The share price of Midas Financing is soaring having no undisclosed price sensitive information (PSI).
The non-bank financial institution's share price jumped 49 per cent or Tk 10.10 each within five trading days to close at Tk 30.80 on Monday.
Following the recent abnormal price hike of the company's share, the Dhaka Stock Exchange (DSE) served show-cause notice on the company.
The company informed the DSE on Monday that there was no undisclosed price sensitive information for the recent unusual price hike.
Even after being served show-cause notice, the share price of the company has not stopped rising and topped the Monday's gainers' chart with 10 per cent gain.
Market insiders said there was no justification for rising the company's share price in such way as its last quarter's (April-June, 2018) earnings per share turned negative.
The company's consolidated EPS stood at minus Tk 0.24 for April-June, 2018 as against Tk 0.30 for April-June, 2017.
In six months from January to June 2018, its consolidated EPS was Tk 0.14 as against Tk 0.89 for January-June, 2017.
The market insiders advised the investors to carefully invest in stocks and analyse the fundamentals of the securities beforehand.
The Midas Financing, which was listed on the Dhaka bourse in 2002, disbursed 10 per cent stock dividend for year ended on December 31, 2017.
The company's paid-up capital is Tk 1.32 billion and authorised capital is Tk 2.0 billion, while the total number of securities is 132.29 million.
The sponsor-directors own 39.70 per cent stake in the company while institutional investors own 29.02 per cent and the general public 31.28 per cent as on June 30, 2018, the DSE data shows.
The share price of Premier Leasing & Finance is also rising having no undisclosed PSI as its share price jumped 27 per cent within five trading days to close at Tk 13.10 each on Monday.
The DSE also served show-cause notice on the company. But, the company echoed the same: there was no undisclosed information that might have caused the unusual price increase.
Recently, the capital market regulator has suspended trading of shares of Monno Jute Stafflers, Bangladesh Autocars and Legacy Footwear for 30 workdays due to their abnormal price hike.
The Bangladesh Securities and Exchange Commission (BSEC) also sent five companies-Monno Ceramic Industries, Kay & Que (Bangladesh), Aziz Pipes, Stylecraft, and Dragon Sweater-to "spot trading" effective from Sunday due to their abnormal price hike.
The regulator also formed a two-member committee and asked it to find in 30 workdays the reasons behind the abnormal price hike of Bangladesh Autocars and Legacy Footwear.
Another investigation was conducted for Monno Jute's share price hike and the regulator would disclose the report soon.
Among the junk and low-cap stocks, the premier bourse has also recently delisted two and identified 15 others to review the viability of their businesses.
After the BSEC and DSE move, the share prices of the companies were falling gradually.
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