Zeal Bangla Sugar Mills Limited has extended suspension of trading on the bourse until October 29 later this month.
According to an official disclosure on Dhaka Stock Exchange’s (DSE) website on Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) extended the share trading suspension of the state-owned company for another 15 days, effective from Thursday (October 15.)
Earlier on September 14, the Bangladesh Securities and Exchange Commission (BSEC) suspended share trading of the company after the watchdog detected anomalies in the trading of the companies’ shares.
The stock market regulator issued an order to the Dhaka Stock Exchange (DSE) to suspend share trading of the company from September 15 for a month, which was supposed to end on Wednesday (October 14).
Regarding trading suspension of the company, BSEC asked bourses to comply with Provision 9(7) of the Securities Ordinance, 1969, where it said that the suspension of a company would be in effect until further order.
Recently, prices of junk and low capital stocks have also kept rising abnormally at the DSE.
Share prices of the state-owned company rose to Tk200 in August, although the company declared no dividend for the last ten years.
Analyzing DSE data, this Dhaka Tribune correspondent found prices of quality stocks such as Grameenphone, British American Tobacco Bangladesh, Square Pharma, and Brac Bank falling.
On the other hand, share prices of fundamentally weak and low cap company Zeal Bangla rose significantly.
Share prices of Zeal Bangla closed at Tk213 per share on the last trading day.
Shares of the company trading under Z-category are also known as junk shares.
The government holds 51% share of Zeal Bangla, while other institutions hold a stake of 13.93%, and general investors the remaining 35.07% of shares in the company.
The company was listed on the Dhaka Stock Exchange in 1988. Its paid-up capital is Tk6 crore.