Dragon Sweater trading resumes in public market today

The regulator lifts restriction amid 'satisfactory' corporate disclosures

FE Report | Published: September 09, 2018 10:14:54 | Updated: September 13, 2018 12:01:44

The share trading of Dragon Sweater and Spinning Limited (DSSL) will resume in the public market today (Sunday), following withdrawal of restriction by the securities regulator.

On August 16 last, the Bangladesh Securities and Exchange Commission (BSEC) suspended share trading of three companies, including the DSSL, for 30 sessions due to 'abnormal' price hike and 'unusual' trade volume 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 hike.

The BSEC officials said the regulator lifts the restriction on share trading of the DSSL in public market considering some developments.

The BSEC said in its order that some satisfactory changes have been observed in the status of DSSL in respect of corporate disclosure and other factors.

On August 19 last, the board of directors of the DSSL recommended 5.0 per cent cash and 20 per cent stock dividend for the year ended on June 30, 2018.

The company has also reported EPS (earnings per share) of Tk 2.25, NAV (net asset value) per share of Tk 21.95 and NOCFPS (net operating cash flow per share) of Tk 1.23 for the year ended on June 30, 2018 as against Tk 1.32, Tk 13.73 and Tk 0.04 respectively for the same period of the previous year.

"… it is necessary in the interest of investors and securities market to withdraw the restriction imposed on share trading of the DSSL," the BSEC said in its order.

The BSEC has also directed the Dhaka and Chittagong stock exchanges to place the shares of the DSSL from the spot market to the public market for transactions.

"The financial adjustment facilities in transactions of the shares of the company will be applicable as per the existing rules," the BSEC order said.

The share price of DSSL closed at Tk 33.50 each with a rise of 1.4 per cent or Tk 4.32 on Thursday on the premier bourse.



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