The unusual rise of some ‘Z’ category companies having small capital base is not a sign of healthy growth of our stock market. As reported in today’s FE, since August 22, the share prices of junk companies rose significantly and some of them were on top of all listed securities in terms of price change. However, the top 10 gainers chart of Dhaka Stock Exchange (DSE) do not include any of these ‘Z’ category companies.
According to DSE information, the prices of some ‘Z’ category companies rose between the range of 39 per cent to 156 per cent in last eleven trading sessions. Such abnormal behaviour of the stock prices of worst-performing companies should be monitored properly by both the stock exchanges and the regulatory body for the sake of the market.
Companies like Dulamia Cotton Spinning Mills, Zeal Bangla Sugar Mills, Hakkani Pulp & Paper Mills, Bangladesh Welding Electrodes and Shyampur Sugar Mills cannot at all attract the prudent and diligent investors with their poor fundamentals. So the authorities must warn the innocent investors about the risk of investing in weak companies.
On August 16 the shares of Monno Ceramic Industries were traded at Tk 42.60. Later, the company’s share price jumped 156 per cent or Tk 66.60 in 13 trading sessions including the session executed on Tuesday. On Tuesday the company’s share price rose 9.97 per cent or Tk 9.9 to close at Tk 109.20.
The share price of Dulamia Cotton Spinning Mills, a ‘Z’ category company, rose 9.95 per cent or Tk 2 to close at Tk 22.10 on Tuesday. The company’s share price rose 89 per cent or Tk 10.40 in last 10 trading sessions. The share price of another ‘Z’ category company Zeal Bangla Sugar Mills went up 66 per cent or or Tk 26.70 in last 10 trading sessions including Tuesday’s session. On Tuesday, the company’s share trading closed at Tk 67.30 with a rise of 9.93 per cent or Tk 6.10.
The share trading of Hakkani Pulp & Paper Mills closed at Tk 81.70 with a rise of 9.93 per cent or Tk 7.40 per share on Tuesday. The company’s share price rose 23.60 per cent or Tk 15.60 in last 14 trading sessions. Another ‘Z’ category company Bangladesh Welding Electrodes witnessed a price hike of 9.68 per cent or Tk 1.80 to close at Tk 20.40 on Tuesday. The company’s share price rose 18 per cent or Tk 3.10 in last five trading sessions. Another ‘Z’ category company Shyampur Sugar Mills featured 44 per cent rise in last nine trading sessions. The company’s shares were traded at Tk 22.80 on August 22 and later the price rose to Tk 32.80 on Tuesday.
