Bangladesh Building Systems, a 'B' category listed company, is witnessing an unprecedented price hike and increase in volume of shares in the last few trading days.
Within a week, the company's share price jumped over 53 per cent or Tk 10 each to close at Tk 28.80 on Tuesday on the Dhaka Stock Exchange (DSE).
The steel buildings manufacturer's share price was Tk 18.80 a week earlier on January 24.
The company's share prices started to rise from January 24 and went on flying after the company published a hefty profit growth for October-December 2021.
The company posted a massive 745 per cent increase in its second quarter (Q2) earnings for October-December 2021 compared to the same quarter of the previous year, thanks to increasing non-operating income.
The company's EPS soared to Tk 0.93 for October-December 2021, as against Tk 0.11 for October-December 2020.
Bangladesh Building Systems, a corporate director of BBS Cables, sold 2.50 million BBS Cables shares in December, which helped the company to book a hefty profit, company officials said.
The company's six months EPS for July-December 2021 also rose to Tk 0.96 as against Tk 0.21 for July-December 2020.
Recently, the company was placed in 'B' category from 'A' category with effect from December 21, 2021 as the company approved 2.0 per cent cash dividend for the year ended on June 30, 2021.
Some analysts are saying that the company's share price is rising too fast and the regulator should investigate whether there is any wrongdoing from manipulators.
Share prices of some companies are on the rise, although transaction and price movement of these companies' shares do not match their fundamentals, said an analyst at a leading brokerage firm.
He noted that some influential investors by disseminating rumours are trying to manipulate the prices of shares of many companies.
"The investors need to be cautious and should not pay heed to any rumours related to companies and take their investment decisions prudently," he added.
Senior executives of the company could not be reached.
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