The price of Anlima Yarn Dyeing's stocks has been rising continuously for the past couple of days riding on rumours in spite of the fact that its profits had declined in the last two quarters.

Furthermore, the company had informed its investors of having no undisclosed price sensitive information that could lead to a rise in stock prices.

Yet, the price of each share rose 22 per cent to Tk 45.5 in the past seven days. In a span of the past three months, it was a rise of 45 per cent starting off from Tk 29, as per the Dhaka Stock Exchange data.

A stock broker, preferring anonymity, said the Anlima stock price has been rising solely for rumours.

"There is nothing but pure gambling. It has no huge profits or news that can improve its situation," he said.

The dyeing company's profits dropped 28 per cent year-on-year to Tk 30.45 lakh in the first half of 2020-21.

Some investors explained that their peers were buying the stocks despite knowing that unscrupulous actors were at play, coordinating efforts to take the shares to a high level.

"Such investment may even erode their money but who cares. As the company's paid-up capital is small, the number of shares is small and a handful of investors can influence prices of the stocks," said the broker.

The company's paid-up capital is Tk 17.8 crore. It provided 2 per cent cash dividend for fiscal 2019-20, which ended on last June 30.

The company posted Tk 8.08 crore in sales in the first half of fiscal 2020-21, down 12 per cent year-on-year from Tk 9.23 crore.

About the profit fall, the company in its half yearly annual report said it provides yarn dyeing services to export-oriented knit and woven fabric manufacturers.

Sales of sewing thread is dependent upon orders from garment factories. Total sales are seasonal and dependent upon the style of exports. As such, the sales revenue varies from quarter to quarter depending upon the export order behaviour, it said.

The company generated Tk 1.14 crore less in sales revenue in the second quarter of 2020-21 compared to the corresponding quarter of 2019-2020.

"Due to decrease in sales the earnings per share have declined to Tk 0.17 from Tk 0.24 in the corresponding quarter of 2019-2020," it said.