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Share price of Jute Spinners, a "Z" category company, is soaring despite the company's production suspended nearly two years since June 2016.
Within three consecutive sessions, the company's share price jumped more than 14.22 per cent or Tk 22.40 each to reach at Tk 179.90 on Monday. The company's share price was Tk 157.50 on April 18.
Despite suspension of the company's production, its share price jumped more than 238 per cent or Tk 126 each in the last two years. Two years ago, its share price was Tk 53.20 each.
However, the company's share price fell 4.0 per cent on Tuesday to close at Tk 172.70 each at the Dhaka Stock Exchange (DSE).
Following the recent abnormal price hike of the company's share, the Dhaka bourse served show-cause notice on the company on Monday.
The company informed the DSE Tuesday that there is no undisclosed price sensitive information for recent unusual price hike of its shares.
Earlier on January 14, the company also mentioned that their mill has been closed since June 2016.
"We are surprised seeing the unusual price hike of shares and the volume of trade in the market," said the company in another query of DSE on January 3.
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 23.20 per cent and the general public 36.98 per cent as on February 28, 2018, the DSE data shows.
On the other hand, share price of Rupali Life Insurance also rose 29 per cent or Tk 13.60 each within a month to reach at Tk 60 each on Monday.
Following the recent abnormal price hike of the company's share, the DSE served show-cause notice on the company.
The company informed the DSE Tuesday that there is no undisclosed price sensitive information for recent unusual price hike of its shares.