Shinepukur Ceramics rising 'abnormally' in falling mkt

The share price of Shinepukur Ceramics, a 'B' category stock, is rising 'abnormally' as its share price rose 9.07 per cent further on Monday despite the sharp fall of the market.
The ceramic maker's share price jumped about 85 per cent or Tk 21.50 each in the last one month riding on speculation.
The company's share closed at Tk 46.90 on Monday on the Dhaka Stock Exchange. Its share price was Tk 25.40 each a month earlier on April 17.
Its shares traded between Tk 24.50 and Tk 47.30 in the last one year, according to available statistics from the DSE.
Shinepukur Ceramics was also the day's most-traded stock on the DSE with 13.05 million shares worth nearly Tk 604 million changing hands on Monday.
The news of a jump in Shinepukur Ceramics' earnings per share (EPS) in the third quarter (Q3) of the current fiscal year led to the buoyancy in the market, according to a leading broker.
The company's EPS soared more than 325 per cent year-on-year to Tk 0.17 for the January-March 2022 quarter compared to the same period of the previous year.
The company's nine months EPS that ended on March 31, 2022 also rose to Tk 0.27, up from Tk 0.14 for the same period a year earlier.
The ceramic maker disbursed only 2.50 per cent cash dividend for the year ended on June 30, 2021. In 2020, it provided a 2.0 per cent cash dividend.
Market insiders said price manipulation might be behind the abnormal price hike of the company's share as transaction and price movement does not match its fundamentals.
The investors are chasing its stock without conducting a proper analysis when they see the rise in values, said a stockbroker.
"If the stock faces correction, general investors will be the losers, which will dent their confidence," he said.
Some companies with low performance records also made their way into the top gainers' list of the DSE frequently, riding on a rumour that the investors are putting money in the securities.
"The influential investors by disseminating rumours are trying to manipulate the prices of shares of many companies to make quick-profit," he said.
The investors should be careful about buying overvalued stocks in order to avert any misfortune, he said.
Senior executives of the company could not be reached over the telephone.
The company's authorised capital is Tk 5.0 billion and paid-up capital is Tk 1.46 billion while total number of securities is 146.96 million.
Sponsor-directors own 50 per cent stake in the company while institutional investors 10.04 per cent and the general public 39.96 per cent as on April 30, 2022, the DSE data showed.
Listed in 2008, Shinepukur Ceramics is a member of Beximco Group.

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