United Insurance, Saiham, Alltex deny hidden triggers behind recent price surges
United Insurance recorded the biggest rise of the three, with its share price soaring 60% to Tk67.10 between the end of June and the first week of August.
Three listed companies -- United Insurance, Saiham Textile and Alltex Industries -- have informed the Dhaka Stock Exchange that there is no undisclosed price-sensitive information (PSI) behind the recent "unusual" surge in their share prices and trading volumes.
The companies issued the clarifications today (9 August) in response to formal queries from the premier bourse on 6 August, after their shares posted double-digit gains within a short span, raising concerns among market participants about speculative trading.
United Insurance recorded the biggest rise of the three, with its share price soaring 60% to Tk67.10 between the end of June and the first week of August.
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While the company denied any hidden corporate developments, its latest half-yearly financial statements showed a notable improvement in profitability.
Earlier, on 19 July, the general insurer reported earnings per share (EPS) of Tk1.99 for the January-June 2026 period, up from Tk1.66 in the same period a year earlier.
Analysts, however, believe that a 60% rise in a share price over such a short period often points to momentum-driven trading rather than being explained by fundamental strength alone.
Similarly, Saiham Textile Mills told the DSE that it has no secret news to share, despite its share price rising 40% in less than a month to Tk26.40. The rally in this textile miller's stock is particularly intriguing given its recent operational disclosure made on 11 May.
The company's board decided on 10 May to suspend production and close its oldest spinning unit from 1 June 2026 to avoid further financial losses caused by ageing machinery and high production costs.
While the management plans to carry out a major Balancing, Modernisation, Rehabilitation and Expansion (BMRE) programme, which will keep the unit closed for about 18 months, investors appear to be betting on the "remarkable" increase in production capacity promised after the reconstruction.
Despite the production halt, demand for the company's shares remained strong throughout July and early August.
Meanwhile, Alltex Industries saw its share price surge 35% to Tk22.20 during the same period.
In response to the regulator's query, the company maintained that it had disclosed all relevant information to its shareholders.
The firm's latest earnings report for July-March of the 2025-26 fiscal year showed a marginal recovery, with EPS turning positive at Tk0.03, compared with a loss of Tk0.14 in the same period a year earlier.
Although its net asset value per share improved to Tk26.71, the company remains under observation by cautious investors.
