Low-cap stocks continue to soar

FE Report
Share prices of most of the "Z" category companies are rising abnormally in recent weeks though they had no price sensitive information (PSI) or any expansion plan amid sluggish market movement.
Within one month, some "Z" category companies' share price jumped between 8.12 per cent and 49.12 per cent while 34 companies share price rose 8.51 per cent Sunday though the market is passing a bearish mood, according to Dhaka Stock Exchange (DSE).
Following the recent abnormal price hike of these low-cap companies' share, the DSE also served show-case notices on 14 companies recently, but the companies informed the premier bourse that they had no price sensitive information for unusual price hike.
Some retail investors have already burnt their fingers as the market remained volatile over the price hike of poorly performing stocks, traders said.
"An unusual price hike of "Z" category companies amid a slow mood in the market may cause a massive loss in their portfolios," said an analyst adding that investors should be careful to put funds in the low-cap companies.
Listed companies with low capitalisation also dominated the day's gainer chart on the day though the market witnessed correction with turnover hitting seven month low.
Among the "Z" category companies, share prices of Meghna Pet Industries, Progressive Life Insurance, Sonargoan Textile, Meghna Condensed Milk, Metro Spinning, Sinobangla Industries, Modern Dyeing, Beach Hatchery, BIFC and Janata Insurance continued to surge though there was no price sensitive information.
Share price of Meghna Pet rose 8.51 per cent to close at Tk 20.40 on Sunday. The company's share price jumped 49 per cent within a month.
BIFC's share price soared 7.69 per cent to close at Tk 11.20 on the day. The company's share price jumped 8.74 per cent within a month.
Beach Hatchery's share price closed at Tk 18.80 each, surging 7.43 per cent on the day. The company's share price soared 7.43 per cent in one month.
Share price of Modern Dyeing soared 5.97 per cent to close at Tk 244.90 each on the day. The company's price gained 22.45 per cent in one month.
Share price of Janata Insurance soared 5.96 per cent to close at Tk 16 on the day. The company's share price rose 8.11 per cent in one month.
Metro Spinning's share price jumped 5.13 per cent to close at Tk 12.30 each. The company's share price jumped 25.52 per cent in one month.
Sonargoan Textile's price rose 4.90 per cent on the day to close at Tk 57.80 each on Sunday. Within one month, the company's share price soared 23 per cent.
Share price of Progressive Life Insurance jumped 4.81 per cent to close at Tk 76.20 on the day. The company's share price streaked 49 per cent within one month.
Share price of Samata Leather Complex, a "Z" category company, also surged 40 per cent or Tk 20.10 each to reach within one month despite the company is still facing shortage of working capital.
The company said Sunday that Samata Leather Complex is still passing its shifting and construction process at Hemayetpur, Savar in Dhaka.
However, the company's share price fell 4.25 per cent to close at Tk 67.50 on the day.
[email protected]