Five out of top 10 gainers are from 'Z' category
Prices of junk stocks continue to soar
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Share price of Savar Refractories, a 'Z' category stock, continued to soar despite it reported negative earnings per share and failed to pay dividend over the years.
The company's share price soared 73 per cent or Tk 73.70 each in the last one month since December 17, 2018.
The Savar Refractorie's share price rose 9.95 per cent on Sunday, dominating the day's gainers' chart to close at Tk 174.60 each. Its price was Tk 100.90 a month ago.
The company's share price traded between Tk 75 and Tk 211 in the last one year, according to the data from the Dhaka Stock Exchange (DSE).
The management of the DSE served show-cause notice on the company several times whether there was any price sensitive information for the abnormal price hike of its shares.
The company, in knee-jerk replies however, informed the premier bourse that they have no price sensitive information for recent unusual price hike.
The company's earnings per share (EPS) stood at Tk 0.31 in the negative for July-September, 2018 as against Tk 0.21 in the negative for the same period a year ago.
Savar Refractories is not the only stock that has been registering a rise in their share prices. The prices of some other 'Z' category shares are also rising as a section of people is spreading various rumours to profit from the hike, market analysts said.
The 'Z' category shares have been rising in the same pace in the last few days which is a matter of concern, and investors should remain cautious, said an analyst.
"Some are gambling with the shares of the worst-performing companies to make quick-profit, taking the advantage of rising trend of market".
He noted that investors should be careful about the unusual price hike of the low-profile companies and they do not pay any heed to rumors at the time of trading shares.
An official of the Bangladesh Securities and Exchange Commission (BSEC) said they are looking into the matter and the investors should also be careful about the unusual price hike of the low-profile companies.
Meanwhile, five out of top 10 gainers' came from the 'Z' category and posted a price rise of over 9.0 per cent on Sunday, according to the DSE data.
After Savar Refractories, Jute Spinners, another 'Z' category stock, was the day's second highest gainer, posting a rise of 9.75 per cent, followed by Emerald Oil Industries with 9.63 per cent gain, Tallu Spinning 9.59 per cent and Kay & Que 9.10 per cent.