Wata Chemicals has come under the lens of the securities regulator for its unusual share price hike.
“The commission has formed a two-member panel to probe into the abnormal price movement on Monday,” Bangladesh Securities and Exchange Commission said in a statement yesterday.
The panel was asked to submit the investigation report by 10 days to the commission, it said. On Monday, stock prices of Wata Chemicals jumped more than 700% following its corporate declaration.
It recommended 30% stock dividend for the year ended on December 31, 2013. The company reported a net profit after tax of Tk3 crore during 2013 and made Tk2 crore in 2012, according to its financial statements.
On the news of probe body formation, its stock price tumbled 7.7% to close at over Tk449 a share, making it the second worst performer on the day, as the company failed to attract any buyer.
Since its transfer to the main market from the OTC market in mid last month, the stock witnessed no sellers. Many investors alleged that somebody has tried to fish in the troubled water by manipulating share prices of the stock.
They also expressed dissatisfaction for not getting the company’s financial condition both on DSE server and the company website, which was found not functioning. The net asset value per share of the company is equal to Tk119.82 as of last year, which has been questioned by several analysts.
