Stocks
Unusual Surge in Share Price of ‘Jute Spinners’ Raises Eyebrows on DSE
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.
Major General Mohammad Quamruzzaman (retd) has stepped down from his role as an independent director of the board of the Dhaka Stock Exchange, citing personal reasons.
He also served as a member of the DSE’s Nomination and Remuneration Committee (NRC).
Quamruzzaman was appointed to the DSE board on 1 September 2024, following the fall of the Awami League-led government. After serving for nearly one year and nine months, he submitted his resignation on Saturday (24 May).
Speaking to Quamruzzaman confirmed his resignation, saying, “Yes, I have resigned as an independent director for personal reasons.”
Md Shafiqur Rahman, Deputy General Manager of Public Relations and Publications at the DSE, said Quamruzzaman submitted a resignation letter mentioning personal reasons behind his decision.
“The DSE board will now take a decision regarding the resignation,” Shafiqur Rahman said.
He also indicated that Quamruzzaman may be planning to join another company, which could have influenced his decision to resign.
Earlier, another independent director of the DSE board, Shahnaz Sultana, also resigned from her position. She was likewise a member of the NRC.
According to the DSE annual report, Shahnaz Sultana is the CEO and Chief Consultant of FINS Alliance Risk Advisory and Consultancy and has served as the Founder and Chairperson of the WE Global Women Foundation since 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
