The share prices of four listed companies surged recently despite having no undisclosed price sensitive information (PSI).
The companies are: United Finance, Bangladesh Lamps, Sonarbangla Insurance and the state-run Renwick Jajneswar.
These companies' share rose up to 20 per cent within two trading days.
Following the unusual price hike, the Dhaka Stock Exchange (DSE) served show-cause notices on the companies.
In response, the companies in knee-jerk responses separately informed the prime bourse on Tuesday that there was no undisclosed price sensitive information for the recent unusual price hike of the shares.
Share price of United Finance jumped 20 per cent within two trading days to close at Tk 24.20 each on Tuesday.
Even after being served show-cause notice, the price of the company has not stopped rising as it soared 10 per cent on Tuesday. It was also the day's highest gainer for the two consecutive sessions.
United Finance, which was listed on the DSE in 1994, disbursed 10 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2017.
The share price of Bangladesh Lamps also rose 20 per cent or Tk 40.20 each within seven days to close at Tk 249.20 on Tuesday.
Even after being served show-cause notice, the price of the company has not stopped rising as it soared 5.0 per cent further on Tuesday.
The company's share traded between Tk 166.90 and Tk 298 each in the last one year.
The share price of Sonarbangla Insurance also rose 45 per cent within seven trading days despite having no undisclosed price sensitive information.
During the period from January 07 to January 15, the insurer's share price jumped Tk 7.20 each to close at Tk 23.30 on Tuesday.
Even after being served show-cause notice, its share price also rose 9.91 per cent on Tuesday.
The state-run Renwick Jajneswar's share price also rose 25 per cent or Tk 203 each within a month to close at Tk 1025.90 each on Tuesday.
Even after being served show-cause notice, the price of the company has not stopped rising as it soared 7.49 per cent further on Tuesday.
Market analysts said even after serving of show-cause notices, the prices of the companies continued to rise which may hit the investors.
He noted that investors should be careful about the unusual price hike of any company's share and do not pay any heed to rumors at the time of trading.
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