Unusual Price Hike
BSEC asks DSE to probe 12 companies
Bangladesh Securities and Exchange Commission on Thursday decided to ask the Dhaka Stock Exchange to investigate unusual price hike of 12 companies that witnessed 50 per cent to 150 per cent price hike in the last 15 days. The decision was taken at a regular commission meeting on the day presided over by its chairman M Khairul Hossain. The BSEC would ask the DSE to submit the report within 15 working days.
The 12 small capital-based companies are — Legacy Footwear, Desh Garments, BD Auto Car, Rahima Food, Information Service, Monno Staffler, Modern Dyeing, Anwer Galvanising, JMI Syringes and Medical Device, Hakkani Pulp, Intech Online and Alhaj Textiles.
According to the DSE website, the price of Legacy Footwear shares rose to Tk 47 from Tk 19, price of Desh Garments shares rose to Tk 97 from Tk 46 and price of BD Auto Car shares rose to Tk 52 from Tk 26 in the last 15 trading sessions.
The DSE suspended trading of CVO Petrochemical and Rahima Food for unusual price hike on Tuesday and Wednesday respectively.
The bourse on Tuesday also said that it would run an investigation into the unusual price hike of CVO’s shares.
CVO Petrochemical’s shares were traded at Tk 89.6 each in April this year but the price increased to Tk 634.7 by the end of August and closed at Tk 867.70 on Monday although the company did not have any price sensitive information.
On September 15, BSEC launched a probe into CVO Petrochemicals and three other companies — Mithun Knitting, Tallu Spinning and Bangas — for unusual price hike of their shares.
Market operators said although the market regulator on several occasions had announced to form a probe committee to investigate price hike of several companies’ shares, the price of some companies with low capital continued to rise.
Earlier in July, BSEC investigated unusual price hike of JMI Syringes and Medical Devices, Summit Purbanchal Power Plant, CVO Petrochemicals and Alhaj Textiles with no success.
-With New Age input
