Aftab Automobiles, Eastern Housing under scrutiny

The Dhaka Stock Exchange Tuesday suspended the trading of the shares of Aftab Automobiles and Eastern Housing, two ‘A’ category companies, to conduct enquiries into the unusual rise in their share prices in recent times, said bourse officials.
‘The bourse will keep the trading of the shares of the companies halted until the investigations were completed,’ said DSE chief executive officer AFM Shariful Islam.
He said the bourse also observing closely the price movements of other securities.
On Tuesday, share price of Aftab Automobiles gained 11.36 per cent to close at Tk 1,231.75.
Share price of Eastern Housing gained 7.31 per cent to close at Tk 495.25. Face value of each share of the companies is Tk 100.
Earlier, on February 24, the Securities and Exchange Commission formed an enquiry committee to probe into recent unusual trading and price hike of shares of Aftab Automobiles at the stock exchanges.
The two-member committee was asked to submit its report within 30 working days.
‘We are conducting the probe,’ an SEC official, who is also a member of the investigation team, told on Tuesday. ‘The probe team is investigating into the suspected insider trading by the sponsors/directors of the company,’ he added.
Share price of Aftab Automobiles jumped to Tk 895 on February 24 from Tk 442.25 on January 25 against the face value of Tk 100, according to DSE statistics. The share price of the company started surging from mid January when it was traded at around Tk 345.
Share price of Eastern Housing surged to Tk 495.25 on March 17 from Tk 324.25 on March 3.
Earlier, the DSE suspended trading of the shares of Rahima Food, Mona Food, Bionic Sea Food, Quasem Silk, M Hossain Garments Washing and Dying, Bangladesh Electricity Meter Company, Dynamic Textile Industries, Saleh Carpet Mills and Amam Sea Food, low-profile ‘Z’ category companies, and is conducting enquiries into the unusual rise in their share prices.
Eight companies out of the nine were served with show-cause notices on Monday as the company, according to the bourse, violated the securities-related laws. The DSE served show-cause notice to Rahima Food on March 11 in this connection.
The bourse asked the companies to show causes why the bourse would not take appropriate action against them.

The New Age