Dhaka, Bangladesh (BBN)– Share trading of 14 companies, suspended by the Securities and Exchange Commission (SEC) a week back due to their unusual price hike, will resume under the spot market from Sunday next.
“The SEC market monitoring committee withdrew its previous decision for the sake of investors’ interest,” Anwarul Kabir Bhuiyan, an executive director of the SEC, said.
The fourteen companies are Sonali Aansh, Mithun Knitting, Tallu Spinning, CMC Kamal, Saffko Spinning, Miracle Industries, Standard Ceramic, Aziz Pipes, Bangladesh Autocars, United Airways, Desh Garments, Dacca Dyeing, Ambee Pharma and Pharma Aids.
The SEC suspended trading of Pharma Aids from November 1 this year as its stock price soared almost 164 per cent on October 31 after the company declared unprecedented dividend, the Financial Express (FE), a local newspaper, reported.
The company announced 30 percent cash and 500 per cent stock (five bonus shares against one existing share) dividends for the year that ended on June 30, 2010.
The regulator became suspicious against the backdrop of its giving only cash dividends since 2004, as it never announced stock dividend since then.
Share prices of the other 13 companies rose five to 17 per cent within first thirty minutes of the trading on November 23. Noticing such price surge without any fundamental reasons, the SEC suspended share trading of the above companies on the day.
BBN/SI/AD-01dec10-12:20 am (BST)
