- Web Desk
- 9 Hours ago
Declining sales may force Pak Suzuki to exit stock market
- Web Desk
- Oct 12, 2023
WEB DESK: Pak Suzuki Motor Company (PSMC) has shared a significant update about its future on the Pakistan Stock Exchange (PSX).
The company is thinking about a proposal from its main owner to buy all its remaining shares and stop trading on the PSX.
This decision suggests that PSMC might find it too expensive to stay listed on the stock exchange.
Fahad Rauf, a market expert, thinks PSMC believes its shares are worth more than what the market says, leading them to consider buying them back.
After this news, PSMC’s stock price went up quickly, hitting its highest point for the day. PSMC has been facing challenges like falling sales and high costs, causing them losses in recent months.
They even had to shut down their car and motorcycle plants in Pakistan.
These challenges are part of the bigger issues in Pakistan’s car industry, including high energy costs and problems with importing due to a lack of dollars.
While the decision to stop trading might not directly impact the car industry, what PSMC decides to do with its plants will be closely watched.
If they close down, it would be bad news for the industry. But this decision also matters for the PSX, which doesn’t have many big companies anymore.
This lack of big companies trading is causing problems for Pakistan’s stock market, which used to be worth a lot more than it is now.
This drop in the market’s value shows the bigger problems in Pakistan’s economy and stock market. It’s something investors, analysts, and people interested in business news are keeping a close eye on.