Haseeb Waqas Sugar Mills Limited has announced its decision to suspend its previously considered share buyback plan, citing a sudden and artificial increase in its share price triggered by speculators. The announcement was made public through a notice to the Pakistan Stock Exchange (PSX) on Monday following a board meeting held on July 25.
According to the notice, the board was informed that after the initial intimation of a buyback shared with the PSX on June 26, 2025, the company’s share price skyrocketed by over 200%, reaching levels far above its historical average.
“The price of each share was around Rs10 when the letter was sent. The weighted average price for the last three years was also around Rs10. This sharp increase is purely speculative, especially considering the company is not currently operational,” the notice stated.
The company emphasized that the abrupt price spike lacked any fundamental justification and appears to be orchestrated by market speculators aiming to offload their shares at inflated prices back to the company during the buyback.
Moreover, the Board clarified that no sponsor, officer, or insider of the company engaged in any trading activity post-announcement to maintain transparency and avoid any perception of conflict of interest.
“The Board deliberated extensively and expressed serious concern over market manipulation. It has unanimously decided not to proceed with the buyback under these speculative circumstances and to halt all related activities for the time being,” the statement concluded.
This development sheds light on the increasing risk of speculative trading on the PSX, particularly when companies announce strategic actions like share repurchases. It also highlights the challenges faced by non-operational or distressed firms in managing market perceptions.
