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National Housing Finance & Investment is witnessing an unprecedented price hike and increase in volume of shares despite no undisclosed price sensitive information (PSI).
Within a week, the non-bank financial institution's share price rose more than 51 per cent to close at Tk 67.10 on Monday. It was also the two years' highest closing price on the Dhaka Stock Exchange (DSE).
The company's share price was Tk 44.40 a week earlier on August 3. Its share traded between Tk 28 and 67.10 each in the last one year, according to data from the DSE.
Following the 'abnormal' price hike, the DSE served show-cause notice on the company on Monday.
The company, however in a knee-jerk response, informed the DSE that there is no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares.
Even after being served show-cause notice, the company's share price has not stopped rising and soared 10 per cent further on Monday, becoming the day's top gainer.
Market analysts said the investors should be cautious about buying overvalued stocks in order to avert any misfortune.
Share prices of many companies are on the rise, although transaction and price movement of these companies' shares do not match their fundamentals, said an analyst.
He noted that some influential investors by disseminating rumours are trying to manipulate the prices of shares of the companies under question.
The investors need to be cautious and should not pay heed to any rumours related to companies and take their investment decisions prudently, he added.
Senior executives of the company could not be reached over the telephone.
The National Housing Finance & Investment, which was listed on the DSE in 2009, disbursed a 15 per cent cash dividend for the year ended on December 31, 2020. In 2019, it provided a 10 per cent cash dividend.
The company's earnings per share (EPS) jumped to Tk 0.56 for April-June 2021 as against Tk 0.32 for April-June 2020.
In six months for January-June, 2021, the company's EPS was Tk 1.28 for January-June 2021 as against Tk 0.80 for January-June 2020.
The company's paid-up capital is Tk 1.17 billion and authorised capital is Tk 2.0 billion, while the total number of securities is 117.03 million.
The sponsor-directors own 56.27 per cent stake in the company, while the government owns 9.34 per cent, institutional investors own 10.34 per cent and the general public 24.09 per cent as on July 31, 2021, the DSE data showed.