Islami Bank extends winning streak, gains 22% in two days
However, the sudden spike has raised eyebrows among market observers, as the bank has made no official announcements regarding earnings, dividends, or board meetings that could justify the sharp rise
Islami Bank topped the gainers' list for the second consecutive session today (30 June), with its share price rising by 9.76% to close at Tk40.50 on the Dhaka Stock Exchange (DSE), despite the bank's failure to publish its annual or quarterly financial results.
The rally follows a 9.82% gain in the previous session, taking the bank's two-day increase to nearly 22%. The surge in share price also boosted Islami Bank's market capitalisation by approximately Tk1,000 crore, bringing the total to around Tk6,520 crore.
However, the sudden spike has raised eyebrows among market observers, as the bank has made no official announcements regarding earnings, dividends, or board meetings that could justify the sharp rise.
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Earlier in June, Islami Bank sought a three-month extension to release its annual financials for 2024 and first-quarter results for 2025, citing unavoidable circumstances.
The bank stated that the statements were not adopted at its board of directors' meeting held on 29 May.
As a result, despite repeated attempts, the private sector lender failed to publish its financials, leaving shareholders in the dark.
Since the fall of the previous government in August, Islami Bank has published only one quarterly statement – for July to September. Eight months have since passed without any further financial disclosures.
The deadlines for publishing its 2024 annual financials, dividend declaration and first-quarter financials for 2025 have already lapsed, as per listing regulations.
In September last year, the Bangladesh Securities and Exchange Commission (BSEC) instructed the DSE to investigate an unusual surge in Islami Bank's share price.
According to the BSEC order, the country's premier bourse was asked to examine the trading of Islami Bank shares between 6 August and 25 September to determine the causes behind the sharp price and volume fluctuations, including any signs of market manipulation, insider trading, or other forms of market abuse.
The securities regulator asked the DSE to submit its investigation report within 30 days; however, no meaningful outcome has been reported so far, according to a BSEC source.
During the specified period, Islami Bank shares soared by more than 116%, rising from Tk32.60 on 6 August to Tk70.40.
Market analysts believe a mix of factors may have fuelled last year's rally, including the perception that the bank had been freed from the influence of S Alam Group, speculation about a potential investment by the International Finance Corporation (IFC), and increased efforts by existing shareholders to raise their stakes in the bank.
According to Islami Bank's May shareholding report, a total of 131.89 crore shares – representing 81.92% of the bank's total equity and owned by S Alam Group – remain blocked.
