DSE investigates surge in share prices of three companies
Graphics: Agamir Somoy
The Dhaka Stock Exchange (DSE) has investigated the unusual increase in the share prices of three listed companies: Baraka Power, Sharp Industries, and New Line Clothings. Among them, Baraka Power and Sharp Industries responded that their share prices rose without any undisclosed price sensitive information (PSI). However, New Line Clothings has not replied to the DSE's query.
According to DSE sources, in response to letters seeking explanations for the abnormal price hikes, Baraka Power and Sharp Industries stated that they possess no undisclosed price sensitive information (PSI) that could account for the surge in their share prices.
On the other hand, New Line Clothings failed to submit any explanation within the stipulated timeframe despite receiving a similar request.
Data shows that the share price of Baraka Power rose from Tk 8 on July 27 to Tk 10.50 on August 11. In just 10 trading sessions, the share price jumped by Tk 2.50, or nearly 31 percent.
Sharp Industries experienced an even steeper climb. On May 3, the company's share price stood at Tk 15.30, which soared to Tk 42.90 by August 11. Over a span of roughly three months, the stock price surged by Tk 27.60, or nearly 180 percent.
Meanwhile, the share price of New Line Clothings went from Tk 5.10 on July 12 to Tk 7 on August 11. Within a single month, the stock increased by Tk 1.90, or approximately 37 percent.
Market insiders noted that whenever a company's share price experiences an unusual rise, the DSE standard protocol requires seeking an explanation from the concerned firm. If no price sensitive information exists, experts advise investors to avoid falling for rumors or unwarranted speculation and to make investment decisions based on the company's fundamentals.
