Stock price of S Alam Cold Rolled Steels, owned by the embattled S Alam Group, continued to soar on the Dhaka Stock Exchange for the second consecutive week, even after the prime bourse served a show-cause notice, enquiring about the reasons behind that.
Despite the company's persistent business challenges, the Chattogram-based steel-maker's stock has jumped 140 per cent in just 10 trading days to close at Tk 23.60 on Thursday. This increase comes amid no clear catalyst for such a rise, raising concerns among market analysts.
Presently, the company has been grappling with frozen bank accounts, restricted access to letters of credit, and a lender's move to auction its mortgaged assets as its owner fled the country following the recent political changeover.
The company is yet to publish its annual financial report for FY24 although seven months have passed. And its nine months' profit plunged 53 per cent year-on-year to Tk 27.54 million through March last year.
Despite these setbacks, its stock continued its upward trajectory, gaining more than 53 per cent further this week, becoming the week's top gainer. The company was also the highest gainer last week by posting a 57 per cent rise.
Such an unusual price movement prompted the prime bourse to serve a show-cause notice to the company authority last week. In response, the company said that there was no undisclosed price-sensitive information behind the price surge.
Over the past few weeks, many non-performing stocks are significantly beating their industry peers, which are in regular business operation, posting profits and giving dividends to their shareholders.
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