Experts questions Far East Knitting’s 35% rise in share price in a day

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Experts questions Far East Knitting’s 35% rise in share price in a day

 

Experts expressed worries today when the share price of Far East Knitting & Dyeing rose around 35 per cent in a single day after the company recommended 10 per cent cash dividend for its shareholders.

The company’s 1.91 crore shares changed hands today and the price of its shares soared to Tk 24.10 from the day’s opening price of Tk 17.90.

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“Some manipulators must have been there behind the scene to fuel it to go so high,” said a top official of a merchant bank, preferring anonymity.

Normally a stock is not allowed to rise by more than 10 per cent in a day and there remains no circuit breaker for a stock on the day it issues its disclosure, he said.

Manipulators take benefit of Far East Knitting as it issued its disclosure today, he added.

“The company did not show any miraculous performance in recent times, which may cause the share price to increase so much. It is clearly a case of manipulation,” said the merchant banker.

The knitting company’s earnings per share was Tk 0.79 in the end of the last financial year that ended on June 30 of 2021.

Giving examples of some banking stocks, he said there are many other well-performing stocks whose prices are below than that of Far East Knitting.

The stock market regulator should investigate whether there was any manipulation, he said.

A stock broker echoed the same saying the stock rose riding on a rumour that the manipulators are buying the share.

So the general investors went for buying the stock and the day was chosen to take benefit of the absence of a circuit breaker in its share price rise, he said.

“The rise of Far East Knitting astonished me also,” a top official of Bangladesh Securities and Exchange Commission told The Daily Star, requesting anonymity.

“Actually, investors will have to be cautious. We will find out whether the rise breached any trading rules. But if anyone buys stocks on speculation, we have nothing to do.”

‘Bangladesh’s automotive industry an emerging investment destination for Japan’
DCCI president says in meeting with Japanese envoy

PBC News

 

DCCI President Rizwan Rahman held a bilateral business meeting with Japanese Ambassador to Bangladesh Ito Naoki held at DCCI office on Sunday. Photo: Collected
The automotive industry in Bangladesh could be an emerging investment destination for Japanese entrepreneurs, Dhaka Chamber of Commerce and Industry (DCCI) President Rizwan Rahman said today.

Rahman said this in a bilateral business meeting with Japanese Ambassador to Bangladesh Ito Naoki held at DCCI.

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In fiscal year 2019-20, Bangladesh’s bilateral trade with Japan stood at $2.92 billion when Bangladesh exported goods worth $1.2 billion and imported $1.72 billion from the East Asian island nation, he said.

But Bangladesh’s export to Japan fell to $1.18 billion in 2020-21 fiscal year because of the Covid-19 pandemic, he said and expressed his hope that the amount would increase in the days to come.

He said 321 Japanese companies are now operating in Bangladesh and Japanese foreign direct investment in Bangladesh was $397.15 million in March 2021.

Stating that Bangladesh mainly exports garment products to Japan, he urged the ambassador to facilitate other promising products for export to Japan.

Mentioning the strong bilateral business relation Japan shares with Bangladesh, he thanked the Japanese government for providing the Covid-19 vaccine for the Bangladeshi people.

Naoki said Bangladesh has been able to send a strong message to the world and maintain a positive growth in gross domestic product even during the pandemic.

He also said the Japanese economic zone in Araihazar will be able to go for operation by next year and it will expedite Japanese investments in Bangladesh.

The Japanese ambassador said the governments of both the countries can sign free trade agreements.

Naoki also said the automotive industry in Bangladesh can be a good destination for investment.

Japan’s Mitsubishi has completed their feasibility study and next year they will take decision on investment in Bangladesh, he added.

Deshbandhu Polymer to raise Tk 500 crore through Sukuk

PBC News

Deshbandhu Polymer, a listed polymer manufacturer, has decided to raise a fund of Tk 500 crore through Sukuk.

The company disclosed the information at the Dhaka Stock Exchange (DSE) website today. After the disclosure, stocks Deshbandhu Polymer rose 2.6 per cent to Tk 23.70.

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The company said its board of directors approved a plan to issue a sukuk targeting up to Tk 500 crore, subject to the approval of Bangladesh Securities and Exchange Commission.

“The amount will be confirmed by the issue manager, including structuring specialist, which might be in the level of up to Tk 500 crore by Sukuk and/or right issue and/or convertible option for Sukuk etc.”

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