Low-cap cos' share prices continue to soar sans PSI

FE Report | Published: June 05, 2018 10:32:26 | Updated: June 06, 2018 16:05:55


The share prices of some low-cap companies continued to soar 'abnormally' in a bearish market, despite having no price sensitive information (PSI).

The share prices of Monno Jute Stafflers, Zeal Bangla Sugar Mills, BD Autocars, Imam Button Industries, Ambee Pharmaceuticals, Alif Industries and Safko Spinning Mills are soaring without any PSI.

These seven companies' market-cap is between Tk 4.60 million and Tk 375 million, according to statistics of the Dhaka Stock Exchange (DSE).

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In the last one month, the share price of Monno Jute Stafflers jumped nearly 48 per cent or Tk 786 each to close at Tk 2,436.10 on Monday at the DSE.

The company's share price was Tk 1,650.50 each on May 6.

In the last one year, its share was traded between Tk 491 and Tk 2,436.10 each.

Following the recent 'abnormal' price hike, the DSE served a show cause notice to the company.

However, the company informed the DSE Monday that there is no undisclosed PSI for the recent unusual price hike of its shares.

The company's paid-up capital is only Tk 4.60 million and authorised capital is Tk 10 million while the total number of securities is 460,000.

The sponsor-directors own 55.90 per cent stake in the company while the institutional investors own 6.36 per cent, foreign 0.03 per cent, and the general public 37.71 per cent as on April 30, 2018, the DSE data shows.

The company, which was listed with the DSE in 1982, disbursed 15 per cent stock dividend for the year ended on June 30, 2017.

Share price of Zeal Bangla Sugar Mills soared 24 per cent within five trading days to close at Tk 51.80 on Monday.

The state-run company's paid-up capital is only Tk 60 million.

BD Autocars' share price also jumped 20 per cent within five days to close at 131.10 each on Monday. The company was also day's top gainer, gaining 9.98 per cent.

The company's market cap is only Tk 38.63 million.

The share price of Imam Button also rose 18 per cent in the five trading days to close at Tk 28.50 on Monday.

The company's market cap is Tk 77 million.

Ambee Pharma's share price soared 12 per cent to reach at Tk 496.60 on Monday.

The company's market cap is only Tk 24 million.

Alif Industries share price also rose 24 per cent in five trading days to close at Tk 105.20 on Monday.

The company's market cap is Tk 375.97 million.

The share price of Safko Spinning soared 12 per cent in five sessions to close at Tk 19.10 on Monday.

The company's market cap is Tk 291 million.

The recent unusual price hike of these companies prompted the DSE to serve show-cause notices.

All the companies echoed the same on Monday that there is no undisclosed information that caused the unusual price increase.

"Even after being served show-cause notice, the prices of some of these companies, have not stopped rising, which may cause the investors to incur massive losses," said an analyst.

He advised the investors that they (investors) should carefully invest in stocks and should analyse the fundamentals of the companies beforehand.

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