Nothing visible in TRG Pakistan, its share price continuously rising at PSX

The sources in broker houses said that a US based foreign advisor, Don Jones is luring Pakistani investors, by sending WhatsApp messages, for manipulation of TRG Pakistan Ltd share price.

KARACHI: The share price of TRG Pakistan Limited is still moving up and gained Rs 3.63 at Pakistan Stock Exchange (PSX) Trading Hall on Wednesday despite an announcement by the Securities and Exchange Commission of Pakistan (SECP) to investigate the alleged ‘insider trading’ in this regard.

In last four-week times, the share price of TRG Pakistan Ltd has gone up from Rs 12 to Rs 51.32 till today, while the SECP and the management of PSX have so far failed to provide any fruitful information for local innocent investors regarding rumour of this listed company.

SECP had asked the management of PSX to investigate ‘insider trading’ matter of TRG Pakistan Ltd and submit its report to it, meanwhile the share trading of this company is continued and the innocent investors are pouring their heard-earned money in it without any solid information.

A number of complaints have been received to SECP regarding unusual share trading of TRG after its announcement on July 30, 2020 that “TRG Pakistan Limited would like to announce that one of its indirect portfolio companies, IBEX Limited, has initiated a listing process on NASDAQ (American Stock Market). The valuation range that IBEX is seeking is $20 to $22 per share, implying a pro-rated stake for TRG Pakistan of Rs 20 billion.”

However, the company’s notice had said, “Given the volatility in the financial markets as well as the current outlook for the global economy, there is no certainty as to the potential success of this listing.”

The local investors, without any confirmation of said listing, started buying shares of TRG Pakistan Ltd and its share price had touched Rs 51.32 today from Just Rs 12.

Initially, the SECP did not pay heed to these complaints, but after complainants put this issue on Prime Minister (PM) portal to lodge a complaint, SECP become active and asked PSX to investigate the matter.

According to law, TRG Pakistan Ltd is bound to inform PSX and SECP, if the news of its listing on NASDAQ was true. On the other hand, the company had to issue a rebuttal if the news of its listing was false. However, it failed to do either.

According to sources, insider trading is being commonly done by big players under a common notion that the SECP never takes such matters seriously nor imposes any big penalties for such acts.

The sources in broker houses said that a US based foreign advisor, Don Jones is luring Pakistani investors, by sending WhatsApp messages, for manipulation of TRG Pakistan Ltd share price. The investors also asked the SECP and PSX management to investigate this matter of Don Jones.

“Some US based individuals are issuing investment advisories for certain stock which are based in US jurisdiction,” one of the broker said.

There is a possibility that a person or his associate may have some interest in trading of this stock which is outside from Pakistan but advisory is intended to have a placebo affect on the stock, he added.

IBEX is an associate/subsidiary of TRG (Pakistani listed stock) which has been subject to huge price speculation in last few weeks due to an obvious ostensible reason of “listing on the main board of NASDAQ” — this is the second attempt of IBEX, it may fail this time as well. AFINITI is yet another subsidiary/associate concern of TRG which failed in attempt of listing on NASDAQ, yet a lot of price building took place.

“Advisors who are based out in US must not divulge into practice of luring an investors who would lose because of a failed listing and has no role in the successful listing of the company in US jurisdiction, the broker said.

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