The share prices of Shahjibazar Power Company hit the roof for the second trading session on Tuesday after the trading of the shares of the company resumed at the Dhaka Stock Exchange on Monday after a trade suspension since August 11 this year. The company’s share prices surged despite the trade suspension and a downward revision of the net profit of the company by the Bangladesh Securities and Exchange Commission following a finding that the company inflated its net profit.
Shahjibazar’s share prices rose by 9.99 per cent or Tk 9.80 to close at Tk 107.90 on Tuesday.
As per the DSE data, 47,200 shares of Shahjibazar worth Tk 50.92 lakh changed hands on the day.
On Monday, Shahjibazar’s share prices rose by 9.98 per cent to Tk 98.10 from its last closing price of Tk 89.20 before the trade suspension.
Market operators said that the share prices of Shahjibazar continued to rise despite the BSEC investigation and downward revision of its profit as there was 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, they said.
The unusual price hike also refers that stocks manipulators are not afraid of any step of the BSEC as the share price of the company is still on the rise, operators said.
Following a special audit, the BSEC found that Shahjibazar Power Company inflated its net profit by Tk 11.68 crore in its financial statement for the July 2013-March 2014 period.
The capital market regulator as per the investigation also 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.
Following the special audit, 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.
Shahjibazar earlier in its quarterly 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.
In September this year, the BSEC decided to conduct the special audit on Shahjibazar’s financial report and appointed A Qasem and Company for examining the third quarterly financial statements disclosed by Shahjibazar.
Following 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 to Tk 8.88 crore and Tk 0.78 respectively for the same period of the previous year.
-With New Age input
