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Monno Fabrics keeps soaring sans PSI

Its share jumps 35pc in five days

FE REPORT | June 15, 2022 00:00:00

Monno Fabrics has been witnessing an unprecedented price hike and increase in volume of shares even though there is no undisclosed price sensitive information (PSI).

Just in five trading days, the company's share jumped nearly 35 per cent or Tk 7.0 each to close at Tk 27.20 on Tuesday on the Dhaka Stock Exchange (DSE) even in the falling market.

Following the recent 'abnormal' price hike, the DSE served show-cause notice on the company on Tuesday.

In response, the company, however, said there is no undisclosed price sensitive information for the recent unusual price hike.

Even after the show-cause notice was served, the company's share price has not stopped rising. Rather, it jumped 9.68 per cent on Tuesday, which may weigh on innocent investors.

Some analysts say that the company's share price is rising too fast and the regulator should investigate whether there is any wrongdoing on the part of manipulators.

An analyst said the investors are chasing the Monno Fabrics stock without conducting any proper analysis, as they see continuous rise in its values.

"If this stock faces correction, general investors will be the ultimate losers, which will dent their confidence," he said.

Senior executives of the company could not be reached for comments despite repeated calls.

Share prices of some junk stocks are also soaring in recent weeks despite the DSE's several attempts to discourage investors from pouring money into junk stocks.

Monno Fabrics returned to the bourses' main market on June 13 last year after staying in the over-the-counter (OTC) market since 2009. The company was listed on the capital market in 1996.

The company has reported earnings per share (EPS) of Tk 0.10 for July 2021-March 2022 as against Tk 0.04 for July 2020-March 2021.

The company's paid-up capital is Tk 1.15 billion and authorised capital is Tk 5.0 billion, while the total number of securities is 115 million.

The sponsor-directors own 45.68 per cent stake in the company, while institutional investors own 12.85 per cent, foreign investors 1.44 per cent and the general public 40.03 per cent as on May 31, 2022, the DSE data showed.

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