Four listed companies are witnessing unusual price hike and increase in volume of their shares despite no undisclosed price sensitive information (PSI).
The companies are CVO Petrochemicals Refinery, Beach Hatchery, Safko Spinning Mills and HR Textile.
Within a month, the companies' share prices rose between 23 per cent and 44 per cent on the Dhaka Stock Exchange (DSE).
The share price of CVO Petrochemicals Refinery jumped 44 per cent to close at Tk 166.30 on Wednesday, after hitting one year highest price during the trading session.
The Chittagong-based company's share price was Tk 115.70 in a month earlier on the Dhaka Stock Exchange (DSE).
Beach Hatchery's share price soared 39 per cent in a month to close at Tk 26.20 on Wednesday. The company's share price was Tk 18 each a month ago.
The share price of Safko Spinning Mills also jumped 38 per cent in a month to close at Tk 32.80 on Wednesday. The company's share price was Tk 23.70 a month earlier.
HR Textile's share price also rose 23 per cent close at Tk 75.30 on Wednesday. The textile company's share price was Tk 61.30 each a month ago. Following their 'unusual' price hike, the Dhaka bourse served show-cause notice on the companies separately.
The companies echoed the same: There is no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares.
Even after being served show-cause notice, the share price of HR Textile has not stopped rising and soared 9.61 per cent further on Wednesday. It was also the day's fourth top gainer.
The share prices of CVO Petrochemicals and Beach Hatchery also rose 2.59 per cent and 1.55 per cent respectively on Wednesday.
Safko Spinning's share price, however, dropped 1.50 per cent on Wednesday.
Among the companies, CVO Petrochemicals Refinery, Beach Hatchery, Safko Spinning Mills declared 'no" dividend for the year ended on June 30, 2020.
Even Beach Hatchery failed to declare dividend for the last six years since 2014. The company disbursed 5.0 per cent stock dividend last in 2014.
HR Textile disbursed 10 per cent cash dividend for the year ended on June 30, 2020. In 2019, the company also provided a 10 per cent cash dividend.
Market analysts said the investors should be cautious about buying low-performing and overvalued stocks in order to avert any misfortune.
Share prices of many companies are on the rise, although transaction and price movement of these companies' shares do not match their fundamentals, said an analyst.
He noted that some influential investors by disseminating rumours are trying to manipulate the prices of shares of the companies under question.
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.
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