Khulna Printing's stock soars 160pc in a month

Despite enduring persistent losses over the years, Khulna Printing & Packaging Ltd. (KPPL) has witnessed a remarkable 160 per cent surge in its stock price in just one month on the Dhaka Stock Exchange (DSE).
The company has faced losses consistently for the last five years, with accumulated losses reaching Tk 960 million by the end of FY'22.
It also failed to declare any dividend since FY'21. The company disbursed only 0.25 per cent cash dividend for its shareholders in FY'20.
Despite a lack of apparent reasons for investors to show interest in placing bets on the company, its stock continued to soar since October 30 when the share traded at Tk 10.4. And on November 30, it closed at Tk 27, registering an increase of 160 per cent in one month.
Although there is a lack of apparent reasons for investors to show interest in placing bets on the company, its stock made it to the top gainers' list frequently in recent times. The company reported a loss of Tk 8 million for July-December 2022 and since then it did not publish any financial reports.
Listed on the capital market in 2014, Khulna Printing has remained in the 'B' category for several years even though it has been declaring no dividend since FY'20.
The unusual price movement prompted the prime bourse to serve show-cause notice on the company several times via email and hard copy, seeking clarification on the reasons behind the unexpected surge. But the company has yet to reply to the query.
Contacted, an official of the company, declining to be named, said they were also surprised at the unexplained surge in stock prices. The company's production remained suspended since October 2021, he mentioned.
The company's factory remained closed as the court had ordered freezing the bank accounts of its Chairman SM Amzad Hossain and all his companies in a money laundering case filed by the Anti-Corruption Commission (ACC).
The ACC has also banned the sale and transfer of shares in the names of Amzad Hossain, his wife and daughter, over an allegation that he had tried to smuggle the money outside the country by selling the shares.
The surge in share prices of the company is raising questions, and analysts suspect that price manipulation has been contributing to the abrupt increase.
A hike in the share price is unusual considering the current status of the company, said a leading stockbroker, adding that its stock is rising mainly due to some rumours that their values will increase further.
A vested group that does not care about the companies' actual performance is targeting these firms as they have a low number of stocks, making them easy targets of manipulation, he said.
The general investors keep chasing stocks as they fly on the bourses to make capital gains overnight, a tendency that manipulators cash in on by selling off overvalued stocks to general investors.

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