Khan Brother shares surge without apparent cause
The share price of the loss-making company jumped 46% in just four days
Despite facing a declining business situation, the share prices of Khan Brother PP Woven Bag Industries have surged in recent trading sessions, with no undisclosed price-sensitive information to explain the rise.
The share price of the loss-making company jumped 46% in just four days.
In response to a query from the Dhaka Stock Exchange (DSE) yesterday (10 July), the company said that there is no undisclosed price-sensitive information for the recent unusual price hikes and increase in the volume of shares.
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Khan Brother PP Woven Bag Industries manufactures and exports bulk containers, including FIBC/jumbo bags, and polypropylene (PP) woven bags, sacks, and fabrics.
The company had been incurring losses for four consecutive years until 2022-23. It reported significant losses in the first nine months of the 2023-24 financial year, with a noticeable drop in revenue.
The company has not yet published its annual financials for the fiscal year ending on 30 June, which it is required to do within 120 days after the fiscal year's end.
According to the DSE, on 2 July, the share price of Khan Brother was Tk96 per share, which soared to Tk140.4 by last Monday. The share closed at Tk133.70 on the DSE yesterday.
Despite the worsening business situation over the years, Khan Brother PP Woven Bag Industries' share price witnessed an abrupt rise since September last year, peaking at Tk231 in mid-February, the highest in a year.
After reaching the peak, the share price of the company began to decrease, falling to Tk96 each on 2 July. However, the share prices have started to increase again abruptly without any material information about the company that might impact its financials.
On 28 January, the company had said that there was no undisclosed price-sensitive information to explain an earlier unusual price hike.
