No price-sensitive news, yet shares of Trust Islami Life, GQ Ball Pen surge

The shares of two listed companies, Trust Islami Life Insurance and GQ Ball Pen, have seen unusual price surges over the past month on the Dhaka Stock Exchange (DSE), despite no disclosure of any price-sensitive information from either company.

In response to recent queries from the DSE regarding the abnormal increases in both share prices and trading volumes, the companies said they had no undisclosed information that could have triggered such movements.

Trust Islami Life's shares up 48%

Trust Islami Life Insurance saw its share price rise by 48%, from Tk39.30 on 22 June to Tk58.10 in the latest trading session.

The most recent price-sensitive disclosure from the company was made on 29 January, when the life insurer announced that it had disbursed a 5% cash dividend – including a 2% interim dividend – for the 2023 financial year. 

The dividend was approved at the company's annual general meeting and was paid only to general shareholders.

Since then, the company has not declared any dividends for 2024 or released its full-year financial results. It published the un-audited report for the third quarter of 2024 on 19 November that year.

According to the company's report, its total life fund stood at Tk34.57 crore at the end of September 2024, which was 19% higher compared to the same period a year earlier.

The company listed on the Dhaka bourse in 2023, and is currently being traded under Z category, as it has not met the 10% minimum dividend requirement needed to qualify for the A category.

GQ Ball Pen surges 51%

GQ Ball Pen's share price jumped by 51% between 22 June and 6 August, rising to Tk241, despite the company reporting financial losses in the first nine months of FY25.

During the July-March period of FY25, the company reported a loss per share of Tk3.16.

In response to the DSE's query on its expansion plans, the company stated that due to uncontrollable external factors, it has been unable to proceed with the BMRE initiative as scheduled. Efforts to secure bank financing were also unsuccessful.

Most of the company's machinery is of Indian origin, but since July 2024, political tensions have led Indian authorities to suspend visa issuance for Bangladeshi nationals. 

Despite multiple attempts, the plant manager received no response from the Indian High Commission, preventing the team from inspecting and procuring machinery from India, causing significant delays.

Sourcing alternatives from Germany or China would raise costs beyond the estimated BMRE budget, making it financially unviable, the company stated.

The company had also planned to partially fund the BMRE using rental income from its commercial building in Uttara, Dhaka. 

However, political uncertainty and an economic slowdown led to low investor interest. Only one of the building's six floors was rented, generating insufficient income to cover BMRE costs.