The share prices of Shahjibazar Power Company Limited fell at last on Wednesday following a regulatory step after a relentless surge except some nominal fall since its debut.
The Bangladesh Securities and Exchange Commission on Tuesday sent the shares of SPCL to spot market making them non-marginable in line with the regulator’s move to contain abnormal price hike.
The BSEC earlier had taken several other measures to reign in the surge in the company’s share prices but had failed to contain the rise.
The share prices of SPCL declined by 8.74 per cent to Tk 309.20 on Wednesday from Tk 338.80 closing in the previous trading session.
A total of 5,800 SPCL shares worth Tk 17.93 lakh changed hands in just 13 trades in the first half an hour of trading, but no other transaction was executed in the rest of the trading session as no buy order was placed on the board to purchase any share of the company.
A total of 5,63,400 SPCL shares worth Tk 18.75 crore changed hands in the previous trading session in 1,030 trades.
Market operators said the regulatory move also refrained investors from making fresh investment on Khan Brothers PP Woven Bag Industries, which made a flying debut on Tuesday.
The share prices of the company fell by 18.41 per cent on Wednesday after a 680-per cent surge on Tuesday.
Although the shares of Khan Brothers were traded highest at Tk 86 on Wednesday, but it closed at Tk 63.80 due to investors’ fear of possible regulatory measures regarding the company.
Investors also reduced purchasing of Khan Brothers’ shares on the day as its 24.16 lakh shares worth Tk 17.59 crore changed hands on Wednesday.
A total of 96.20 lakh Khan Brothers’ shares worth Tk 58.89 crore changed hands in the previous trading session.
Khan Brothers made its debut at the Dhaka and Chittagong stock exchanges on Tuesday and its share prices skyrocketed by 680 per cent to Tk 78.10 on the day.
The market regulator on Tuesday also asked all the brokerage houses to bring down SPCL’s share trading-related transactions within the single-scrip exposure limit by next three working days.
All the brokerage houses have to submit SPCL share transaction details to the stock exchange daily and the stock exchange concern will send a summarised report to the commission
within the next working day for regulatory supervision.
Despite several regulatory measures, including formation of two probe bodies and downsizing the company’s profits, Shahjibazar share prices skyrocketed to Tk 338.80 on Tuesday, gaining by 8.73 per cent or Tk 27.20.
Till Tuesday, the share prices of Shahjibazar increased by 1,233 per cent or Tk 313 from its issue price of Tk 25 since its debut on July 15 this year despite all regulatory measures.
On November 9, the commission in its effort to cool down the abnormal rise in the share prices of Shahjibazar formed second investigation committee.
Earlier on August 3, the BSEC had formed a committee that had investigated unusual rise in the share prices of the company.
The regulatory body also recently penalised five directors and managing director of Shahjibazar Tk 55 lakh for providing fabricated financial report.
The BSEC on August 21, following a special audit, had revised downward Shahjibazar’s net profit for the period of July 13- March 14 to Tk 16.86 crore and earning per share to Tk 1.48 for the nine months from Tk 28.54 crore and Tk 2.50 respectively.
The trading of the company remained suspended from August 11 to October 21 due to abnormal hike in its share prices and the BSEC investigation.
Of the 14 newly-listed companies traded on Wednesday, five advanced, seven declined and two remained unchanged.
-With New Age input
