Shares of five companies continue to rise without sensitive price information

The shares of five listed companies have seen an unusual rise in prices and an increase in stock volume in recent weeks despite no undisclosed Price Sensitive Information (PSI).

The companies are Sonali Paper & Board Mills, Beacon Pharmaceuticals, AFC Agro Biotech, Active Fine Chemicals and Central Pharmaceuticals.

These companies’ stock prices rose 30 to 84 percent in the space of a month, while some stocks hit their highest price for a year on Tuesday.

Following their “abnormal” price hike, the Dhaka Stock Exchange (DSE) sent out a show cause notice to companies last week.

The companies, however in knee-jerk responses, informed the DSE that there was no undisclosed price sensitive information from their companies for the recent unusual price hike and increase in stock volume.

Some stocks continued to rise despite advice from DSE and several attempts to discourage investors from investing in stocks.

In one month, the Beacon Pharmaceuticals share price jumped more than 84 percent to close at Tk 230.90 on Tuesday. Its share price was 125 Tk a month earlier. Shares of the drugmaker have risen 200% in the past year.

Sonali Paper’s share price rose 64% in one month to close at Tk 384.50 on Tuesday. The company’s share price was Tk 234 a month ago. The small-cap Sonali paper was re-listed on the DSE a year earlier, having remained in the over-the-counter (OTC) market since 2009.

AFC Agro Biotech’s share price climbed 59 percent in one month to close at Tk33.70 on Tuesday after hitting the one-year high. The company’s share price was Tk 21.20 a month earlier.

Central Pharma’s share price jumped around 35% to close at Tk 18.80 on Tuesday. The company’s share price was Tk 14.20 each a month earlier.

The Active Fine Chemicals share price rose 30% in one month to close at Tk 25 on Tuesday. Its share price was 20 Tk each.

Company stock prices are on the rise, although the transactions and price movements of those companies’ stock are not in line with their fundamentals, an analyst said.

He noted that some influential investors by spreading rumors are trying to manipulate the stock prices of the companies in question.

Investors should be careful not to heed corporate rumors and make their investment decisions with caution, he added.

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