Non-functional New Line Clothings fails to explain DSE query over abnormal share price surge
In a disclosure on its website, the bourse said it had sent the query letter to the company on 2 August after noticing an unusual rise in its share price, but the company is yet to respond.
Highlights:
- DSE serve query on 2 August
- No response receive yet
- Until 2 Aug, shares price surged 33% in five days to Tk7.3 each
- New Line Clothings shares closed at Tk6.9 each today
New Line Clothings, a non-functional company, has failed to respond to a query from the Dhaka Stock Exchange (DSE) regarding an abnormal surge in its share price and trading volume.
In a disclosure on its website, the bourse said it had sent the query letter to the company on 2 August after noticing an unusual rise in its share price, but the company is yet to respond.
Meanwhile, DSE data showed that the share price of New Line Clothings kept rising until 2 August, when the query was sent, but has been declining since then amid selling pressure.
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Data showed that until 2 August, New Line Clothings' share price surged around 33% in just five trading days, reaching Tk7.3 each, despite its factory closure. Since then, the price has fallen to Tk6.9 each today.
According to the DSE, an inspection team visited the company's Gazipur premises on 8 April and found its headquarters and factory completely shut down, confirming a halt in operations. The textile firm, which was listed on the bourse in 2019, has not officially disclosed the closure.
A senior DSE official, speaking on condition of anonymity, told TBS that the exchange had received multiple complaints from investors alleging that the company had ceased operations without proper disclosure. Following these complaints, the DSE inspection team visited the factory after obtaining approval from the Bangladesh Securities and Exchange Commission (BSEC).
The BSEC had earlier approved DSE inspections of 10 companies named Associated Oxygen Limited, Far Chemical Industries Limited, Krishibid Seed Limited, Nahee Aluminium Composite Panel PLC, Ring Shine Textiles Limited, Khan Brothers PP Woven Bag Industries Limited, Beach Hatchery Limited, Global Heavy Chemicals Limited, Indo-Bangla Pharmaceuticals Limited, and Fu-Wang Ceramic Limited.
The commission approved the inspections after reviewing a DSE application, with a focus on protecting the interests of general investors. The process involves visiting the head offices, factories, and other relevant sites of the companies to assess their current operational status.
The DSE inspection team has previously found the factories of Dula Mia Cotton, Safko Spinning, Meghna PET, and Meghna Condensed Milk to be closed.
