Karachi: COVID-19 may have adversely affected the entire world, but the entertainment company Hum Network’s performance in the Pakistan Stock Exchange (PSX) during lock down has been like the Eid shopping rush. The share price of Hum Network between April 15 to May 19 recorded an increase of more than 300 percent.
A quick glance at the stock market data reveals that share prices and volume of Hum Network Limited (HUMNL) started rising on April 15. Closing price of Hum Network on April 14 was PKR 2.30 and volume was just 150,000 shares.
On April 15, demand of HUMNL shares sky-rocketed as 2.5million shares changed hands. However, share price reported modest gain as closing price was PKR 2.61. There was no announcement from HUMNL that can be attributed for heavy demand. PSX 100 index also reported gain of just 20 points. KSE-100 index closed at 31242 compared to April 14 closing of 31222.
Next two days the share prices kept rising modestly but volume remained above a million shares a day. On April 17 trade volume of HUMNL was 4.9 million shares and closing was PKR 3.50.
Monday, April 20 , the market witnessed a buying frenzy in the HUMNL shares. Demand was astronomical though price fluctuated in the range of 100 paisas. This day KSE-100 Index rose by 668 points and total volume was 283million shares. And in this volume, HUMNL had contributed 11.79 million shares. According to PSX data, HUMNL’s volume was 11.79 million shares and closing price was PKR 4.50, up by 100 paisas from previous closing.
Next two days about 17.6 million shares of HUMNL traded in the stock exchange. Since April 20, volume mostly remained above the mark of million shares, except book closure period. Hum Network management on April 23, announced book closure for seven days during which management was not allowed to trade in HUMNL shares. Company announced results on April 30. HUMNL reported profit of PKR 76.9 millions and EPS at PKR 0.08. This was the best quarter during the last nine month and reason was income of PKR 72.8 millions which was noted as “other income”. (financial result)
The month of May started with 3 million shares and 100 paisas increase in the price. From May 4 to May 19 HUMNL’s share price jacked up to PKR 10.61 and volume remain in millions. HUMNL price touched briefly on May 18 at PKR 12.05 but closed at 11.61. This day HUMNL’s volume was 6.2 million shares.
This brief data showed HUMNL’s share prices rose from PKR 2.30 to PKR 10.61 during 24 sessions (from April 15 to May 19). This is a jump of more than 300 percent.
Although, everyone is tight lipped about high volume trade but some market observers says market is witnessing a clash of titans. Is it a matter of hostile take over? A stock market reporter says it is probably too early to flag this point. A company, whose shares volume seldom touched a million shares in the last five months, is now in high demand.
Reporting Farhan Reza,