Monno Agro stock price hits a 52-week high
The share price of Monno Agro and General Machinery jumped by 139% in 52 weeks to reach Tk1,063 on Sunday at the Dhaka Stock Exchange (DSE).
Although the market has been sluggish for the past one year and transactions decreased drastically due to lack of investments, Monno Agro posted such a hike in its share price. And this is why market participants suspect that the company's share price is being manipulated.
In December 2022, the DSE asked Monno Agro to explain its unusual hike in share price, to which the company replied that there is no undisclosed price sensitive information that would explain the increase.
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A top official at a brokerage firm said Monno Agro's shares are easy to manipulate because the company's paid-up capital is small. Share manipulation of this company has happened before, and investors are still bearing losses.
Back in fiscal 2018-19, Monno Agro's shares were raised from Tk380 to Tk5,800 based on rumours that the company issued right shares and declared a stock dividend. The company then paid a 350% stock dividend for fiscal 2017-18.
An official at the Bangladesh Securities and Exchange Commission (BSEC) said the commission's surveillance department is keeping an eye on the Monno Agro stock, and investigating whether any manipulation is taking place here.
In the fiscal 2021-22, Monno Agro made a profit of Tk43 lakh, and paid a 15% cash dividend to the shareholders.
The BSEC also found evidence of manipulation of the shares of Monno Ceramics – another concern of the Monno Group.
The company's owner was found to be directly involved in this manipulation and was fined Tk15 crore by the BSEC in 2021.
