Stocks of five listed companies are witnessing unusual price rises and an increase in the volume of shares in recent weeks though there was no undisclosed price-sensitive information (PSI).
The companies are Meghna Pet Industries, Meghna Condensed Milk, Ring Shine Textiles, Fareast Finance & Investment and Paper Processing & Packaging.
These companies' stock prices rose between 36 per cent and 66 per cent in a span of one month despite some of these companies having failed to declare dividends over the years.
Following their 'abnormal' price hike, the Dhaka Stock Exchange (DSE) served show-cause notice on the companies separately.
The companies, however, in knee-jerk responses said: There is no undisclosed price-sensitive information for recent unusual price hike and increase in the volume of shares.
Some of the stocks continued to rise despite the prime bourse's notice and several attempts to discourage investors from pour in money into the junk stocks.
Within a month, share price of Meghna Pet Industries, a 'Z'-category company, jumped 66 per cent to close at 26.50 on Monday. Its share price was Tk 16 a month earlier. The company also failed to declare dividend over the years.
Share price of Ring Shine Textiles rose more than 51 per cent in a month to close at Tk 14.90 on Monday. The company's share price was Tk 9.90 a month ago. The stock-market regulator restructured its board.
Fareast Finance & Investment's share price soared 48 per cent in a month to close at Tk 9.80 on Monday. The 'Z'-category company's share price was Tk 6.60 a month earlier.
The non-bank financial institution declared 5.0 percent cash dividend last in 2016. The securities regulator also restructured its board.
Share price of Meghna Condensed Milk jumped 46 per cent to close at Tk 21.50 on Monday. The 'Z'-category company's share price was Tk 14.70 each a month earlier. The company has failed to declare dividend for many years.
Stock price of Paper Processing & Packaging, which returned to the bourse's main market two months ago, soared 36 per cent to close at Tk 173.90 on Monday. Its share price was Tk 128 a month earlier.
The company's share price also has jumped 888 per cent since return to the main market on June 13 this year as investors rushed to buy its shares amid short-term speculation. The company's share price was Tk 17.60 on June 13.
Market analysts said investors are investing in these stocks based on speculations, but investors need to realise the true worth of the companies' asset quality.
"The investors should be cautious about buying low-performing and overvalued stocks in order to avert any misfortune," one of them said.
"Share prices of many companies are on the rise, although transactions and price movement of these companies' shares do not match their fundamentals," he said.
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.
© 2024 - All Rights with The Financial Express
