S Alam Steels share soars amid bearish market
Shares of the company rose 10% to touch the circuit breaker on Thursday
S Alam Cold Rolled Steels Limited's share price jumped 35% without any reason in the last five trading sessions when the benchmark index of the Dhaka Stock Exchange (DSE) suffered a 307-point drop.
No official of the company was available to comment on this matter.
According to officials at several brokerage firms, a group of investors are investing in the stock. It is seen twice a year. And at this point, the share price jumps up. But there is no reason behind it. However, there are still no complaints about whether there is manipulation.
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Shares of the company rose 10% to touch the circuit breaker on Thursday, the last working day of the week. So for most of the day, its shares were not traded.
Although there were many buyers for its shares, there were no sellers. The closing price of the shares was Tk33 on the country's premier bourse.
An official at another brokerage firm said some investors were buying and selling the company's shares in collaboration.
"They trade shares in the large amounts. Many are attracted to it. Cashing in on this opportunity, they raise share prices by creating an artificial crisis," he added.
The company already published the financial report for the first three-quarters of FY2022 on the DSE website. However, the report stated that the company's revenue and profits have declined.
In the July-March period of FY2022, its revenue fell by 20% to Tk339 crore and profit dropped by 44% to Tk5.85 crore compared to the previous year in the same period.
The company noted in the financial statement that, profit decreased due to a drop in revenue and an increase in the provision of tax.
According to its financial statement, sales of the company's CI Sheet, or corrugated tin, fell 45% during the period. More than 50% of the company's total sales come from corrugated tin.
However, an official at the company said on condition of anonymity that although the sales of CI Sheet have decreased, the sales of CR Coil have increased. The demand for corrugated tin is decreasing.
Meanwhile, the company has been paying a cash dividend of 10% to investors since fiscal 2015-16. Moreover, its business has not done well in the last two financial years due to the coronavirus pandemic.
