BSEC to probe five companies as share prices skyrocket

The Bangladesh Securities and Exchange Commission is investigating the unusual rise in share prices of five companies.

Staff Correspondentbdnews24.com
Published : 25 July 2017, 01:53 PM
Updated : 25 July 2017, 03:22 PM

The regulator announced the formation of a probe committee in its website on Tuesday. 

The companies under probe are Aziz Pipes, Bangladesh Welding Electrodes, Beach Hatchery, Fu Wang Foods and Khulna Printing and Packaging.

Share prices of several companies that had been suffering losses rose sharply amid an upward trend in the stock market.

The rates have continued to rise even though these companies denied holding unpublished price sensitive information.

Shares of Aziz Pipes rose almost 90 percent in 35 trading sessions. On Jul 16, it traded at Tk 119.8, up from Tk 62.9 on May 24.

The Z-category company, declaring losses for the last three years, reported a profit of Tk 1.8 million for the nine months from July 2016 to March 2017. Its shares closed at Tk 115 on Tuesday.

Bangladesh Welding and Electrodes had reported a loss of Tk 30 million in the period between July 2016 and March 2017.

But its shares traded at Tk 23.7 on Jun 29, a staggering hike of 91 percent from Tk 12.4 on May 2. On Tuesday, it ended on Tk 18.6.

In a span of two months, share prices of Beach Hatchery jumped 97 percent. It traded at Tk 22.9 on Jul 22, up from Tk 11.6 on Apr 26.

The company had declared loss of Tk 14.5 million between July 2016 and March 2017.

The shares of the company under the food and allied sector closed at Tk 18.5 after Tuesday's sessions.

Khulna Printing and Packaging Ltd or KPPL reported a loss of Tk 19.8 million in the nine months from July last year.

Its share prices, however, jumped 72 percent in six weeks. On May 2, it traded at Tk 7.5 and rose to Tk 12.9 on Jul 3. KPPL closed at Tk 11.3 on Tuesday.

Aziz Pipes, Bangladesh Welding Electrodes, Beach Hatchery and KPPL are listed on the Dhaka Stock Exchange as underperforming Z-category companies.

But Fu Wang Food, listed as an A category share, saw a hike of almost 72 percent in 50 trading sessions.

On Jul 13, it traded at Tk 24.8, up from Tk 14.4 on Apr 30.

The company reported profits of Tk 39.7 million between July 2016 and March 2017. It closed at Tk 22.9 on Tuesday.