Dhaka Stock Exchange on Tuesday downgraded three companies — CVO Petrochemical Refinery, Rahima Food and Modern Dyeing and Screen Printing — to ‘Z’ category as they were not in continuous operation of their productions for more than six months.
Of the companies, CVO and Rahima Food were in ‘A’ category and the rest was in ‘B’ category.
The DSE management made the decision as per the Section 4 of the Settlement of Stock Exchange Transactions Regulations, 1998.
After the downgradation the trading of the companies’ shares will be settled in nine days instead of three days, a DSE official said.
‘A DSE team has recently visited the factory premises of Modern Dyeing and found that the production of the company has been closed since January 31, 2010,’ a DSE web post said earlier.
Another DSE web post on November 21 said that a DSE inquiry team visited the factory premises of Rahima Food and found the production of the company was fully closed.
The production of CVO has been closed for the last one-and-half years despite the company’s declaration of starting its production in full swing in November 2012, a senior DSE official told New Age.
The DSE management on September 24 halted trading of CVO and Rahima Food’s shares due to abnormal price hike.
CVO’s shares were being traded at Tk 89.6 each in April, but the price rocketed to Tk 873.9 on September 24 that led the DSE to investigate the unusual price hike of the shares.
After the completion of the investigation, the DSE management on Sunday withdrew suspension of share trading of CVO but their prices rose to Tk 943.70 on Tuesday without having any reason.
-With New Age input
