Two listed companies see unusual share price hike

Shyampur Sugar Mills Ltd witnessed a 105 per cent hike in its share price in the last one-and-half-month, though the state-owned company has been out of production since December last year.

During the same period, the share price of Savar Refractories rose 71 per cent, when the company’s production has been decreasing continuously over the last few months.

In separate filings with the Dhaka Stock Exchange (DSE) on Thursday, the two companies stated that their share prices are rising without any reason and they have no undisclosed price sensitive information.

Both the two companies carry out share trading under the ‘Z’ category at the DSE.

Bangladesh Sugar and Food Industries Corporation (BSFIC) had shut the Shyampur Sugar Mills in Rangpur last December after incurring continuous losses in the last five years.

Listed on the stock market since 1996, the company did not disburse any dividend to the shareholders in more than two decades.

Despite the fact, its share price, which was Tk 48.5 on June 27, rose 105 per cent to close at Tk 92 on Thursday.

On the other hand, the share price of Savar Refractories, a brick manufacturing company, soared 71.41 per cent to close at Tk 265.7 on August 17. The price was Tk 155 on June 26.

Each share of the company was traded at Tk 259.70 on Thursday, down by 0.8 per cent from the price of previous day.

Responding to a query, Belayet hossain Khan, company secretary of Savar Refractories, told The Business Post that their production had not been halted completely. Rather, the production activities were going on at a slow pace due to less demand amid the pandemic.

He also added that the company did not disburse any dividend to the shareholders as its financial condition was not up to the mark. They also did not hold annual general meeting regularly.

Currently, the company has no plans for further investment.