Regulator suspends trading of three stocks

The capital market regulator has suspended trading of stocks of Monno Jute Stafflers, Bangladesh Autocars and Legacy Footwear with effect from today for 30 workdays due to their abnormal price hike.

Price of Monno Jute's share jumped 5.7 times to Tk 4,639 in six months while Legacy Footwear rose four times to Tk 272 and Bangladesh Autocars three times to Tk 457 in only four months.

Tap Here to Add The Daily Star As A Trusted Source

On Thursday, the Bangladesh Securities and Exchange Commission (BSEC) gave the order in line with the Securities and Exchange Ordinance, 1969.

The regulator also formed a two-member committee and asked it to find in 30 workdays the reasons behind the abnormal price hike of Bangladesh Autocars and Legacy Footwear.

Another investigation was conducted for Monno Jute's rise and the regulator would disclose the report soon.

However, the authorities of all the three companies denied having any price sensitive information which could have fuelled the prices.

The stockmarket watchdog also decided to send five companies—Monno Ceramic Industries, Kay & Que (Bangladesh), Aziz Pipes, Stylecraft, and Dragon Sweater—to “spot trading” due to their abnormal price hike.

In spot trading, an investor is allowed to purchase shares of a company only when his account has cash money. No one is allowed to purchase shares against sales of shares or loan.

Normally, the BSEC sends a company for spot trading to rein in its trading.

Monno Ceramic's price doubled to Tk 387 while Kay & Que soared 66 percent to Tk 233, Aziz Pipes 89 percent to Tk 269, Stylecraft 126 percent to Tk 2,995 and Dragon Sweater 177 percent to Tk 50.