Bangladesh
17 days ago

Khulna Printing's unusual surge comes under probe

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The stock market watchdog sought an explanation of the unusual movement of Khulna Printing & Packaging (KPPL) on the bourses when most other shares are facing a downward pressure.

The share price of KPPL increased nearly 361 per cent to Tk 33.2 per share between December 23 last year and February 4 this year despite the fact that the company has been non-operational for long.

Meanwhile, most stocks are undervalued amid macroeconomic concerns.

KPPL has been out of business for at least three years and showed losses for more than 05 years.

This is the backdrop against which the sudden jump of the stock looks abnormal.

The surveillance department of the Bangladesh Securities and Exchange Corporation (BSEC) ordered the Dhaka Stock Exchange (DSE) to start an investigation.

A DSE investigation team will submit a report within 30 working days to the BSEC.

In the order, the BSEC asked the DSE to find out if market manipulation, insider trading or other abusive acts were behind the unusual price movement.

The DSE had regularly warned investors of the company's non-operational status with updates on its website.

After the issuance of the order, the share price of KPPL fell 1.51 per cent to Tk 32.7 per share on the DSE on Wednesday.

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