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Four re-listed cos' share prices double in a week sans PSI

FE REPORT | June 23, 2021 00:00:00


Share prices of four re-listed companies, which returned to the bourses' main market recently, almost doubled in a week despite no undisclosed price sensitive information (PSI).

Bangladesh Monospool Paper Manufacturing, Paper Processing and Packaging, Monno Fabrics and Tamijuddin Textile Mills backed on the bourses' main market on June 13, after staying in the over-the-counter (OTC) market since 2009.

These four companies' shares were frozen at upper limit circuit breaker in every trading day since they began trading on the main market of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (DSE).

The investors rushed to buy the companies' shares amid short-term speculation, but sellers were unwilling to sell hoping for higher profit in future which created an 'irrational hype' among investors, said a merchant banker.

Bangladesh Monospool Paper Manufacturing Company's share price soared 93 per cent to close at Tk 106.90 on Tuesday at DSE. The company's share price was Tk 55 each a week earlier on June 13.

Share of the Monno Fabrics also jumped 93 per cent to close at Tk 21.20 each on Tuesday. Its share price was Tk 11 a week ago on June 13.

Each share of Paper Processing and Packaging's closed at Tk 33.90 on Tuesday, soaring 93 per cent within a week. Its share price was Tk 17.60 each on June 13.

Tamijuddin Textile Mills' share price also jumped 92 per cent within a week to close at Tk 25.40 on Tuesday. The textile maker's share price was Tk 13.20 a week earlier on June 13.

Following the 'unusual' price hike, the Dhaka bourse served show-cause notice on the companies separately on Tuesday.

The companies echoed the same: There is no undisclosed price sensitive information for recent unusual price hike of their companies' shares.

Even after being served show-cause notices, the companies share prices have not stopped rising, soaring nearly 10 per cent rise each on Tuesday, which may affect innocent investors, said an analyst at a leading brokerage firm.

He noted that the investors should not pay heed to any rumours related to companies and take their investment decisions prudently.

He advised investors to make their investment decisions based on the company's fundamentals, technical analysis and disclosed information in order to avert any misfortune.

Senior executives of the companies could not be reached over telephone.

The companies started trading primarily in the "Z" category and the status would continue until their next annual general meetings (AGMs) and there after the categorisation will be determined as per relevant provisions.

Recently, the bourses have approved the re-listing of shares of these companies from OTC market to the main market.

Earlier on February 4, this year, the Bangladesh Securities and Exchange Commission (BSEC) allowed these OTC market companies to return to the bourses' main market.

The BSEC said the commission made the decision following applications of the companies and improvement of their business condition.

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