DSE asked to probe 4 OTC return companies

Bangladesh Securities and Exchange Commission on Monday asked the Dhaka Stock Exchange to look into the unusual price hike of four OTC return companies’ shares.

The companies are -- Tamijuddin Textile, Monno Fabrics, Paper Processing & Packaging, and Bangladesh Monospool Paper Manufacturing Co Limited.

Stock market regulator BSEC asked the bourse to submit reports within 15 days.

In February, the stock market regulator allowed the four companies to return to the main market and start trading. On June 13, the small capital-based companies returned from the over-the-counter (OTC) market in DSE. 

Since June, ‘Z’ category company Tamijuddin Textile informed DSE about its price hike three times.

The share price of the company increased 14 times from June to September. On July 13, the share price was Tk 13.2, which soared to Tk 185.7 on September 9.

The company gained less profit in the July-March period of FY21. The earnings per share (EPS) were Tk 0.98 for July 2020-March 2021 against Tk 0.81 for July 2019-March 2020 period.  

‘Z’ category company Monno Fabrics’ share price increased three times between June 13 and June 26. On June 3, the price was Tk 11 but it rose to Tk 33.9 on June 26. The price declined to Tk 29.9 on Monday.

Paper Processing & Packaging Limited’s share price increased 12 times since June. On June 13, the share price was Tk 17.6 but it swelled to Tk 235.3 on September 9. On the last trading day, the price declined to Tk 215.9.

Bangladesh Monospool Paper Manufacturing also returned to the main market from OTC in June. The company’s share price increased 4.25 times since then.

On June 13, the share price was Tk 55 and rose to Tk 234 on September 7. The price fell to Tk 223.9 on Monday.