Company share price hits roof after trading suspension withdrawal
Shahjibazar Power Company inflated its net profit by Tk 11.68 crore in its financial statement for the July 2013-March 2014 period, finds a Bangladesh Securities and Exchange Commission special audit. Following the finding, the capital market regulator decided to take action against Shahjibazar for its failure in disseminating correct information in the quarterly report, a Dhaka Stock Exchange web post published on Monday said.
The BSEC revised the Shahjibazar’s net profit after tax to Tk 16.86 crore and earning per share to Tk 1.48 for the nine months, the DSE web post said.
Despite the fact, share prices of Shahjibazar hit roof on Monday after the trading of the company’s shares resumed on the day at the DSE following a suspension since August 11.
Shahjibazar’s share prices rose by 9.98 per cent to Tk 98.10 on Monday from its last closing price at Tk 89.20 before the trade suspension.
As per the DSE data, 7, 15,400 shares of Shahjibazar worth Tk 7 crore changed hands on Monday.
Earlier, Shahjibazar in its financial statement for the period of July 2013 to March 2014 declared a net profit after tax of Tk 28.54 crore and EPS of Tk 2.50.
The share price of the company increased to Tk 89.20 on August 11 from Tk 36.5 on July 15 this year when the company made its debut on the DSE.
Market operators said that the share price of Shahjibazar continued to rise despite the BSEC investigation because of a rumour that the price of the scrip would rise further.
Manipulators were also playing a major role behind the abnormal rise in the share price of the company even after the suspension of the trading of the shares of the company for more than two months, they said.
The unusual price hike also refers that stocks manipulators are not afraid of any step taken by the BSEC as the share price of the company is still on the rise, operators said.
They said manipulators managed to escape from any sort of regulatory action in most of the cases and that also encouraged them to engage in such activities repeatedly.
Low number of free-float shares made it easy for manipulators to raise the company’s share price abnormally, they said.
In September this year, the BSEC decided to conduct special audit on Shahjibazar’s financial report and appointed A Qasem and Company for examining the third quarterly financial statements disclosed by Shahjibazar.
Considering the audit, Shahjibazar’s consolidated net profit after tax and EPS for January-March 2014 were revised to Tk 16.67 crore and Tk 1.46 respectively from Tk 16.87 crore and Tk 1.48.
The commission also revised its consolidated net profit after tax and EPS from Tk 9.04 crore and Tk 0.79 crore to Tk 8.88 crore and Tk 0.78 respectively for the same period of the previous year.
-With New Age input
