BSEC directs Dhaka bourse to probe Beach Hatchery, Hakkani Pulp stock spike
Beach Hatchery’s share price surged 36%, while Hakkani’s 75% in a short period
The securities regulator has directed the Dhaka Stock Exchange (DSE) to investigate the sharp rise in share prices and trading volumes of Beach Hatchery and Hakkani Pulp & Paper Mills Ltd.
The Bangladesh Securities and Exchange Commission (BSEC) issued two separate directives on 25 and 27 March in this regard.
Both companies' share prices and transaction volumes have risen significantly in a short period, raising concerns about potential irregularities.
Since the DSE is responsible for ensuring compliance with trading rules and regulations, the BSEC has asked the exchange to investigate whether any suspicious transactions or violations of securities laws have taken place. If any irregularities are found, appropriate actions may be recommended.
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DSE has to complete its investigation and submit its findings to BSEC within 30 working days.
Beach Hatchery
According to the DSE website, Beach Hatchery has experienced an unusual 36% surge in its share price over the past 29 trading days, despite a bearish market and ongoing political and economic uncertainty.
On 13 January 2024, its share price was Tk91.70, unexpectedly rising to Tk124.40. By Thursday (27 March), Beach Hatchery's share price had settled at Tk110, decreasing by 9.39%. This sudden rise has raised concerns among market observers, as there is no material information to justify such a movement amid a bearish trend.
Market insiders have described this rally as highly unusual, citing the absence of any significant announcements or developments that might explain the price surge.
During the July–December 2024 period, the company reported a revenue of Tk22.52 crore, compared to Tk12.39 crore in the same period of the previous year.
During this period, its net profit after tax stood at Tk11.16 crore, up from Tk5.46 crore a year ago.
The company's earnings per share (EPS) stood at Tk2.70, while its net asset value (NAV) per share was Tk15.16 at the end of December 2024.
Hakkani Pulp
Hakkani Pulp & Paper Mills has also witnessed an unusual 75.12% surge in its share price over the past 46 trading days, despite a bearish market and ongoing political and economic uncertainty, without any material disclosures.
On 18 March 2024, its share price was Tk41.40, unexpectedly rising to Tk72.50. By Thursday, the share price stood at Tk66.10.
Market insiders have also labeled this rally as highly unusual, pointing out the lack of any significant announcements or developments to explain the sharp increase.
During the July–December 2024 period, the company reported a revenue of Tk62.14 crore, compared to Tk56.32 crore in the same period of the previous year.
In this period, its net profit after tax stood at Tk63 lakh, down from Tk71 lakh a year ago. The company's earnings per share (EPS) stood at Tk0.25, while its net asset value (NAV) per share was Tk24.42 at the end of December 2024.
BSEC's broader investigation
In the last week of February, the stock market regulator directed the Dhaka Stock Exchange (DSE) to investigate the recent sharp rise in share prices and trading volumes of certain listed companies that have been inactive for a long time.
According to BSEC's instructions, some listed companies that have not been operational for an extended period have recently seen a significant rise in share transactions.
The BSEC has asked the Dhaka bourse to investigate whether any suspicious transactions or violations of securities laws have occurred.
