Bangladesh
6 years ago

Jute Spinners share price soaring despite no production

Prices of Regent, Dulamia, Intech, Far Chemical also soaring sans PSI

Published :

Updated :

Share price of Jute Spinners, a "Z" category company, is soaring despite the company's production remained suspended for more than two years since June 2016.

Within four trading sessions, the company's share price jumped nearly 27 per cent or Tk 24.40 each to close at Tk 115.80 on Monday.

Despite remaining suspension of the company's production, its share price jumped more than 63 per cent or Tk 45 each in the last two years.

Following the abnormal price hike, the Dhaka Stock Exchange (DSE) served show-cause notice on the company several times.

"Even after being served show-cause notice, the price of the company has not stopped rising, which may cause the investors to face substantial losses," said an analyst.

He advised the investors to carefully invest in stocks and should analyse the fundamentals of the companies beforehand.

"We are surprised seeing the unusual price hike of shares and the volume of trade in the market," the company said in a massage for the investors on their share price hike through DSE website on Monday.

The company noted that the mill is closed since June, 2016 and they have no undisclosed decision/information relating to the company's operation/profitability regarding unusual price hike in the market and the reason behind the unusual price of shares of the company is fully unknown.

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 June 30, 2018, the DSE data shows.

The share prices of four other companies - Regent Textile, Intech, Dulamia Cotton Spinning Mills and Far Chemical Industries - were also soaring without having undisclosed price sensitive information.

The recent unusual price hike of these companies prompted the DSE to serve show-cause notices.

All the companies echoed the same on Monday that there was no undisclosed price sensitive information that caused the unusual price hike.

On July 18 last, the DSE delisted Rahima Food and Modern Dying & Screen Printing as the share prices of these companies surged abnormally despite the operations remaining closed for more than three years.

According to the Listing Regulations-2015, listed securities may be delisted if it had stopped commercial operations, productions or explorations for three consecutive years.

[email protected]

Share this news