6 years ago

Jute Spinner Ltd's share price soaring despite no production

BD Autocars' share jumps 204pc in one month

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The share price of Jute Spinners Limited, a "Z" category company, was soaring despite the company's production remained close since 2006.

In three consecutive sessions, the share price jumped more than 15 per cent or Tk 27.8 each to reach Tk 183.20 on Monday, and almost doubled (195 per cent) in last one year from Tk 62.20 on July 4 last year.

Following the recent abnormal price hike, the Dhaka Stock Exchange (DSE) served show-cause notice on the company, but it replied on Tuesday that there was no undisclosed price sensitive information.

The company also informed that the production of the company is closed since June, 2006 and the management could not resume its production and business activities.

Earlier in January this year, the company also replied to a DSE query that they are surprised seeing the unusual price hike of shares and the volume of trade in the market.

However, the company's share price fell 6.49 per cent on Tuesday to close at Tk 171.30 each.

The "Z" category company, which was listed on the Dhaka bourse in 1984, failed to pay dividend over the years.

The company's paid-up capital is Tk 17 million and authorised capital is Tk 35 million, while the total number of securities is 1.70 million.

Sponsor-directors own 39.82 per cent stake in the company while the institutional investors own 23.20 per cent and the general public 36.98 per cent as on May 31, 2018, the DSE data shows.

Meanwhile, the share price of Bangladesh Autocars Limited also saw steep rise in the recent days despite having no undisclosed price sensitive information.

In one month, the company's share price soared 204 per cent or Tk 268 each to reach at Tk 399.10 on Monday. The company's share price was Tk 131.10 each on June 4.

However, its share price fell 2.33 per cent to close at Tk 389.80 on Tuesday.

In response to another query, Aramit Limited on Tuesday informed the DSE that the company had no undisclosed price sensitive information for recent unusual price hike of shares.

"Some people are gambling with the shares of the low-cap and worst performing companies," 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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