Inoperative Apex Weaving share zooms 26% in 3 days

Debt-ridden Apex Weaving & Finishing Mills Limited, an SME company, has been rising abnormally without any fundamental reasons. 

Share prices of the company skyrocketed 26 per cent in the last three trading days on the SME Platform of the Dhaka Stock Exchange (DSE).

The scrip on Sunday closed 9.62 per cent higher at Tk 17.10 against the previous close on the bourse.

Its share prices gained abnormally ignoring the facts that the company remained inoperative, incurred losses for years and was saddled with bad loans.

“The gas and power lines cuts have forced the company’s factory to shut down for the past two weeks due to non-payment of arrears,” Apex Weaving & Finishing Mills Md Serajul Islam told The Business Post.

Market insiders alleged that some traders manipulated the prices to reap illicit profits by artificially boosting prices.

Last year, Four SMEs, including Apex Weaving, were shifted from the OTC market to the SME platform as they had been struggling to improve their financial performances.

To date, the fabric manufacturing and processing company suffered a loss of Tk 83 crore. It defaulted Tk 130 crore on repayment of loans until 2018 with Sonali Bank. Any investor maintaining a minimum investment of Tk 20 lakh is eligible as a qualified investor for trading securities listed on the SME platform of the stock exchanges, according to the Bangladesh Securities and Exchange Commission (BSEC).