BSEC suspends share trading of three cos for 30 sessions
Sends five more to spot market due to unusual price hike
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The securities regulator has suspended share trading of three companies for 30 sessions, following 'abnormal' price hikes and 'unusual' trade volumes of the stocks.
The companies' share prices rose up to 737 per cent in a year, following the investors' increased participation despite no reason of supporting the price hikes.
The Bangladesh Securities and Exchange Commission (BSEC) took the decision of suspending the share trading of the companies on Thursday.
As per the BSEC, the share trading of Monno Jute Stafflers, Bangladesh Autocars and Legacy Footwear will remain suspended from next trading day (Sunday).
Mohammad Saifur Rahman, a BSEC executive director, said the share prices of the three companies recently rose abnormally.
"The trade volume of these companies was also unusual. That's why the securities regulator suspended trading of the shares in line with the Securities and Exchange Ordinance, 1969," he said.
Besides, the securities regulator formed a two-member committee to look into the incidents of abnormal price hike and unusual trade volume of BD Autocars and Legacy Footwear.
The committee has been asked to submit its report within 30 working days.
The securities regulator has also sent five companies to the spot market following their abnormal price hikes. These companies' share trading will continue in the spot market until further order.
The companies are Monno Ceramic Industries, Kay & Que (Bangladesh), Aziz Pipes, Stylecraft and, Dragon Sweater and Spinning.
In the spot trading, an investor is allowed to purchase shares of a company only when his account has cash money. No one is allowed to purchase shares against sales of shares.
Of the three companies those faced trade suspension, the share price of Legacy Footwear continued to soar with no apparent reason as the company's share price jumped 737 per cent within a year.
Despite no price sensitive information, the company's share price soared more than 60 per cent in a month to close at Tk 271.10 each on Tuesday.
The price skyrocketed by more than 737 per cent or Tk 238.70 each within a year from Tk 32.40 each on August 16, 2017.
The share price Bangladesh Autocars jumped to Tk 457.50 each on Tuesday from Tk 107.30 on May 23 last. During the period, the company's share price rose 326 per cent.
The share price of Monno Jute Stafflers closed at Tk 4,639.40 each on Thursday. The company's share trading closed at Tk 774.70 each on March 13, 2018. The company's share price rose 499 per cent or Tk 3,864.70 per share during March 13 to August 16, 2018.
BSEC executive director Rahman said the securities regulator has sent five companies to the spot market considering their unusual price movements, among others.