Stocks
Unusual Surge in Share Price of ‘Jute Spinners’ Raises Eyebrows on DSE
![Jute Spinners](https://en.orthosongbad.com/wp-content/uploads/2023/05/New-Project-10-2.webp)
In a significant development, the auditing authority, the industry Shafiq Basak & Co. a regulatory body, has raised concerns about the participation of Jute Spinners, a listed company, in the stock market. The company’s operations have been deemed risky due to the prevalence of speculative trading. In a recent report, Safik Bosak & Company highlighted the potential hazards associated with the continuous surge in speculative trading, which has resulted in an upward trend in the company’s stock. Despite being labeled as a risky venture, Jute Spinners persists in trading shares while the regulatory authority keeps a watchful eye on their activities through the Supervision Division.
Jute Spinners, despite being listed in the stock market almost four decades ago, has consistently failed to provide any returns to ordinary investors. However, the company’s share price has been increasing abnormally. The management of Jute Spinners denies any specific reason for the surge in share prices. According to the company’s secretary, A.T.M. Mostafa, even if all operations of the company were shut down, it would still have to pay a yearly loss of 6 crore Bangladeshi Taka to the bank as interest. Consequently, the rate of this loss keeps rising regularly. Investors can only speculate as to why they are purchasing shares of Jute Spinners.
Mohammad Rezaul Karim, the Executive Director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), has stated that the BSEC’s Surveillance Department is investigating the current surge in the share price of a particular company. Our investigation has revealed that the price has been consistently rising since the purchase of more than 60,000 shares from a single individual account. We are looking into this matter and will take legal action if any irregularities are found. The decrease in the company’s paid-up capital has resulted in a reduced number of shares, leading to a sudden increase in share prices for investors. Previously, the company had also been under scrutiny due to artificial price escalation. The BSEC is closely monitoring the situation.
Al-Amin, a financial analyst and Assistant Professor at Dhaka University stated to Orthosongbad that even though a company is publicly listed, if there is information available that indicates the organization will generate profits, individuals may choose to invest in its shares. Furthermore, if the paid-up capital is low, it could be a cause for concern. This is because there is a prevailing practice that if the paid-up capital falls below 30 crore taka, the company will be transferred to ATB platform. However, increasing paid-up capital requires compliance with the law, maintaining company reserves, generating income, and distributing dividends. Ultimately, the decision to invest lies with the individual investor.
Read More: Jute Spinners in Manipulation, Recovery from Loses to Take 50yrs
The sudden surge in Jute Spinners’ share price has raised concerns and questions among investors in the Dhaka Stock Exchange. The company’s financial instability, lack of profitability, and excessive reliance on loans have contributed to the prevailing uncertainty surrounding the company’s future prospects.
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Stocks
Weekly U.S. Stock Market Reports Diverse Performance
![U.S. Stock](https://en.orthosongbad.com/wp-content/uploads/2024/03/7xm.xyz120015.jpg)
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
Stocks
European Stock Weekly Review Highlights Mixed Trend
![stock European](https://en.orthosongbad.com/wp-content/uploads/2023/04/fsdfsdf.webp)
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
Stocks
Weekly South Asian Stock reports Varied Performance
![south asian stock](https://en.orthosongbad.com/wp-content/uploads/2023/06/New-Project-4.jpg)
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.