The share price of four companies soared unusually since their return to the mainboard of the Dhaka Stock Exchange (DSE) from over-the-counter market.
The business entities are Bangladesh Monospool Paper Manufacturing Company Limited, Monno Fabrics Limited, Paper Processing & Packaging Limited, and Tamijuddin Textile Mills Limited.
The share prices of the companies have jumped between 160% and 764% after the resumption of trade on the main market in June this year.
The DSE did not find any valid reasons or any undisclosed price sensitive information for the unusual price hikes.
Market insiders said the four companies resumed trading on the mainboard as 'Z' category stocks because their earnings are very low. But the share prices of those companies are jumping unusually, which should be investigated in the interest of investors.
Professor Abu Ahmed, a capital market analyst, said some investor groups create demands in low paid-up and poor-performing companies' shares unusually.
As a result, the companies' share prices are going up unusually, which should be controlled by the regulator immediately, he added.
Mohammad Rezaul Karim, executive director of the Bangladesh Securities and Exchange Commission (BSEC), said those companies remain under monitoring.
The regulator will look into the trading of those companies to find out any miss-matches, he added.
DSE launched its over-the-counter (OTC) market in October 2009 with 51 companies.
The companies were ousted from the mainboard to the OTC because of their underperformance or non-performance in business, failure to hold shareholders' annual general meeting over years, and for converting their own shares into electronic ones instead of paper certificates.
Paper Processing & Packaging Limited, which got listed on the DSE in 1990, is engaged in manufacturing, converting and printing of paper & paper products and their marketing.
In the January-March quarter of 2021, the earnings per share of the company were Tk0.40. But its share price stood at Tk152 and unusually jumped up to 764% since its return to the main market on 13 June.
Tamijuddin Textile Mills Limited was listed on the DSE in 1992. In the third quarter of fiscal 2020-21, it posted a net profit of Tk89.26 lakh and the revenue was Tk61.91 crore. But its share price shot up by 500% over the period.
Bangladesh Monospool Paper Manufacturing was listed on the DSE in 1989.
In the third quarter of 2020-21, it reported EPS Tk0.10 but its share price stood at Tk171.90 after increasing 213% over the period.
Besides, Monno Fabrics, listed in 1996, posted revenue of Tk22.85 crore and the earnings per share were Tk0.01.
But its share price stood at Tk26 after increasing 160% since 13 June.