Dhaka Stock Exchange
Why is a defunct company’s share price soaring in the stock market?
Khulna Printing & Packaging Ltd (KPPL) has remained closed for nearly three years—its factory and head office are both non-operational. Yet, its shares are being traded vigorously in the stock market, raising suspicions among investors and relevant authorities.
According to Dhaka Stock Exchange (DSE) records, despite no production activity in the past year, KPPL's share price soared from Tk 7 to a peak of Tk 59.
Currently, each share is being traded above Tk 30.
A review of DSE’s website reveals that the company has no official website.
The web address listed under Lockpur Group is non-functional, and all the contact numbers provided are inactive.
Stock markets open higher in Dhaka, Chattogram
There is no information available regarding company representatives.
A Ghost Company?
A visit to Lockpur Group’s head office in Fakirhat, Bagerhat, confirms that most of its subsidiaries have been shut down for years.
KPPL’s chairman, SM Amzad Hossain, was also the founding chairman of South Bangla Agriculture & Commerce Bank.
During his tenure from 2013 to 2021, the Anti-Corruption Commission (ACC) accused him of bond fraud and money laundering. Eventually, he was forced to resign in September 2021.
In March 2021, the Bangladesh Financial Intelligence Unit (BFIU) froze the bank accounts of Amzad Hossain and his wife. Consequently, the struggling KPPL faced a financial crisis, leading to its effective shutdown.
Former employees of KPPL confirm that the company used to produce packaging for frozen fish and processed food.
Along with KPPL, another subsidiary of Lockpur Group, Bangladesh Poly Printing International, has also ceased operations.
Habibur Rahman, a former employee, states that none of Lockpur Group’s businesses are currently operational.
Stock markets decline throughout week, investors left disheartened
At its peak, KPPL employed around 250–300 workers, but now the factory is completely abandoned.
Irregular Share Trading Raises Questions
In February 2024, a DSE delegation inspected KPPL’s factory in Rupsa, Khulna, and confirmed that production had been suspended.
However, despite being a non-operational company, its shares have become a tool for market manipulation. Over the past month, KPPL’s share price has surged by more than 350%.
An anonymous senior official from a brokerage house in Motijheel reveals that this is not the first time such manipulation has occurred with KPPL’s shares.
A certain group has been exploiting weaknesses in DSE’s software, yet DSE has only issued warnings instead of taking concrete action.
On Tuesday (February 4), the Bangladesh Securities and Exchange Commission (BSEC) directed DSE to investigate the abnormal price movement of KPPL’s shares.
On 2 February, DSE had already sent a letter to KPPL seeking an explanation for the irregular trading, but the company has not responded.
When asked why BSEC has not taken stricter action, Executive Director Rezaul Karim stated that while the commission can issue direct orders, it is DSE’s responsibility to investigate and take action. BSEC is prepared to assist, if necessary.
Investors Aware of the Risks but Still Taking Chances
Discussions with investors indicate that most are aware that KPPL has stopped production and that its shares are highly risky.
Due to a liquidity crisis in the market and their ongoing losses, some investors are willing to take the risk.
Investor Tarek Hossain questions why the regulatory bodies fail to act against such companies. "Investors may make mistakes in decision-making, but why can’t the commission or the exchange house take the right action? Why don’t they delist such problematic companies?" he asks.
A History of Losses
Even when KPPL was operational, it was a loss-making company.
DBA urges extension of special fund for stock market investment
Financial reports show that the company incurred a loss of Tk 7.92 crore in 2019.
While it managed a profit of Tk 6 crore in 2020, its losses soared to Tk 33 crore in 2021.
The company’s latest financial statement from 2022 reports an accumulated loss of Tk 2.31 crore.
Since listing on the stock exchange in 2014, KPPL last paid dividends to investors in 2020—offering a mere 0.25% return.
Why Is KPPL Still Listed on the Stock Market?
Saiful Islam, President of the DSE Brokers Association of Bangladesh (DBA), questions the rationale behind keeping KPPL listed.
"A company that has not been in production for more than six months should not remain on the stock market. Yet, KPPL has been inactive for years, while its shares continue to be manipulated.
DSE should conduct an on-site investigation and remove such companies from the market. Keeping KPPL listed only encourages manipulators," he said.
A senior DSE official, when asked why KPPL has not been delisted, pointed to regulatory constraints. "In the past, when we delisted companies, the commission pressured us to reinstate them, arguing that the delisting process was not systematic. Since then, we have reduced direct interventions in such matters."
DSE Director Minhaj Mannan Emon highlights the lack of quality IPOs over the past decade as a key issue. "Poor-quality companies now dominate the market, creating opportunities for manipulation. It is impossible to manipulate shares of reputable companies like Square or ACI. However, companies like KPPL are destabilising the market and putting investors at risk," he explains.
The Need for a Buyback Law
KPPL’s financial records from 2022 show that 60% of its shares are held by investors, while 39% are with company directors, and 1% belongs to institutional investors.
Given this situation, investors are calling for the implementation of a buyback law for such companies.
DSE has assured that its regulatory division is closely monitoring the situation. Experts believe that after repeated market manipulation and financial failures, there is no room for further irregularities.
19 hours ago
Stock market opens the week with gains
The Dhaka and Chittagong stock exchanges experienced a positive start to the week, with indices rising steadily throughout the trading day.
On Sunday, the main index of the Dhaka Stock Exchange (DSE), the DSEX, gained 13 points.
The other two indices, the Shariah-compliant DSE30 and the blue-chip DSE30, saw increases of 1.5 points and 4 points, respectively.
Throughout the day, the majority of companies saw an increase in share prices. Out of 394 companies listed, 187 experienced a rise in share prices, 155 saw declines, and 22 remained unchanged.
Nine companies declared dividends for the third quarter, distributing returns based on face value per share.
Stock market opens on a positive note in Dhaka and Chattogram
Although the majority of companies saw price increases, most of those in the "A" category saw declines. In this category, 102 companies experienced price decreases, 85 saw increases, and 30 remained unchanged.
The "B" category saw 53 companies with increased share prices, 22 with declines, and 11 that remained unchanged. The "Z" category had 49 companies with price increases, 28 with declines, and 11 that remained the same.
Among the 37 mutual funds traded, most had unchanged prices. However, 11 saw price increases, 9 experienced declines, and 16 remained stable.
In the block market, 33 companies saw 5.1 million shares traded, amounting to Tk 18 crore. Among these, Bich Hatchery Limited was the standout, selling 615,934 shares at a price of Tk 96.90 per share, generating a total of Tk 5.83 crore.
The top performer of the day was Golden Sun Limited, a "B" category company, which saw its share price increase by 10 percent. On the other hand, Zill Bangla Sugar Mills Limited saw a decline of 5.97 percent, positioning it at the bottom of the price movement list.
While the main index rose, the SME index saw a dip, losing 18 points, which resulted in a 1.5 percent drop. Of the 18 companies in this sector, 12 experienced declines, while 6 saw price increases.
Stock markets decline throughout week, investors left disheartened
Despite the rise in indices, overall trading volume decreased by Tk 33 crore compared to the previous week's final trading day. At the close of trading, the total turnover in the Dhaka stock market amounted to Tk 356 crore, down from Tk 389 crore on the last day of the previous week.
The Chittagong Stock Exchange (CSE) mirrored the DSE in terms of the rise in the overall index, which increased by 50 points.
Out of 204 companies traded, 97 saw price increases, 73 experienced declines, and 34 remained unchanged.
Like the DSE, the CSE also saw a decrease in trading volume, with turnover dropping by Tk 8.6 crore compared to the previous week's close. The total turnover for the day in the CSE stood at Tk 4.15 crore.
END/UNB/MM/SAM
4 days ago
Weekly Review: DSE plunges as investor confidence wanes; key sectors hit hard
The Dhaka Stock Exchange (DSE) witnessed a sharp decline over the past week, with key indices tumbling amid investor uncertainty and weak market sentiment.
The Shariah-based DSES index fell by 27 points, while the blue-chip DS-30 index dropped by 9 points. Additionally, the SME index of the DSE declined by 8 points within the same period.
Decline in Trading Volume and Turnover
Throughout the week, the average daily turnover at the DSE stood at Tk 338 crore, a notable decline from the previous week’s Tk 412 crore. Overall, the market saw a decrease in weekly trading volume by Tk 74 crore.
The total turnover for the week reached $139 million, marking a $30 million decline compared to the preceding week.
Stock Performance Overview
Over the week, the share prices of 98 companies increased, while 26 remained unchanged. However, the majority—272 companies—experienced a significant decline.
Among major sectors, the banking sector recorded a price drop of 4.59%, while financial institutions suffered a sharper decline of nearly 18%. Insurance stocks faced a major setback, plunging approximately 35%, while mutual funds fell by over 15%.
Read: Stock markets decline throughout week, investors left disheartened
The IT sector also struggled, with stock prices tumbling by 32%. Pharmaceuticals declined by 27.74%, whereas the engineering and ceramics sectors posted losses of 40% and 45%, respectively.
Limited Positive Returns
Only four sectors managed to post positive returns during the week, while 19 sectors ended on a negative note. Among the best-performing stocks, Delta Spinners Limited, a Z-category company, recorded the highest five-day return of 39.13%.
Conversely, Prime Finance First Mutual Fund, an A-category company, suffered the steepest loss of the week, shedding 21.29% of its value. Notably, none of the A-category stocks featured in the top ten gainers list, with six belonging to the Z-category and four to the B-category.
Similarly, in the list of the week’s worst-performing stocks, no Z-category companies were present. Instead, five A-category and five B-category companies comprised the lowest-performing stocks.
Investor Trends and Market Sentiment
Brokerage houses have indicated that many investors, particularly those who have incurred losses, are shifting their focus towards riskier stocks in an attempt to recoup their investments. This trend has resulted in a decline in long-term investments in the market. Additionally, investors are increasingly turning to companies that either do not provide dividends or offer minimal payouts.
Read more: Indices rise in early trading in stock markets
As the market grapples with ongoing uncertainty, analysts suggest that stronger regulatory oversight and improved corporate governance could help restore investor confidence in the DSE.
6 days ago
DSE index declines while CSE sees gains in first hour
The Dhaka Stock Exchange (DSE) witnessed a decline in all its indices during the first hour of trading, whereas the Chittagong Stock Exchange (CSE) recorded a slight gain.
But share prices of most companies fell across both markets.
DSE Performance
In the first hour of trading, the DSE’s benchmark index, DSEX, dropped by 11 points. Among the other indices, the Shariah-based DSES declined by 6 points, while the blue-chip DS30 fell by 3 points.
Read: Stock Market Slump: DSEX index falls by 40 points in three days
The DSE recorded a total turnover of Tk 76 crore during this period. Out of the traded stocks, 117 companies saw their share prices increase, while 151 declined, and 99 remained unchanged.
CSE Performance
Conversely, the CSE's overall index rose by 5 points in the first hour of trading.
At the CSE, the share prices of 19 companies increased, while 24 declined, and 6 remained unchanged. The total turnover stood at Tk 55 lakh.
Despite the mixed performance in indices, the broader market sentiment remained cautious as investors assessed market trends.
1 week ago
Major slump hits both Dhaka, Chattogram stock markets on opening day
The Dhaka Stock Exchange (DSE) and Chattogram Stock Exchange (CSE) faced significant downturns on the first trading day of the week, with the CSE recording higher transaction volumes while the DSE experienced a decline in trading activity.
From the first hour of trading on Sunday, indices at both markets began to plummet, ending the day with substantial losses.
The DSE’s key index, DSEX, dropped by 34 points, whiles the CSE’s overall index declined by 65 points.
DSE sees sharp fall as most stocks suffer price drops
At the DSE, of the 403 traded companies, share prices fell for 261, rose for 75, and remained unchanged for 67. Similarly, in the CSE, of the 188 companies traded, 103 saw price drops, 55 experienced gains, and 30 remained unchanged.
Trading volume at the DSE fell by Tk 38 crore compared to the previous session, with a total transaction value of Tk 318 crore, down from Tk 356 crore. In contrast, trading at the CSE increased by Tk 7 crore, reaching Tk 12.88 crore, up from Tk 5.67 crore in the prior session.
Among the traded sectors at the DSE:
· A-category stocks: Of 224 companies, 147 saw declines, 36 recorded gains, and 41 remained unchanged.
· B-category stocks: Prices dropped for 59 companies, rose for 23, and stayed unchanged for 23.
· Z-category stocks: 52 companies saw declines, while prices increased for 15, with 18 remaining unchanged.
· The mutual fund segment also faced challenges, with 21 funds declining in value, three increasing, and 13 staying static.
· In block market transactions, 15 companies traded 32,26,394 shares worth Tk 18.32 crore.
Sectors That Struggled
Notably, no price increases were recorded in the cement, ceramics, telecommunications, and jute sectors. In the banking sector, prices of 16 companies fell, while 17 remained unchanged. In the pharmaceutical sector, prices dropped by 1.25%, with seven companies seeing gains and 27 experiencing declines.
Sectors That Held Up
The technology, real estate, textile, and tourism sectors showed some resilience. In the IT sector, both listed companies recorded gains.
Dividend Announcements
Six companies at the DSE have distributed dividends for the third quarter of the previous year. Additionally, National Tea Company Limited announced a dividend for its investors.
Top Performers and Laggards
Shahjibazar Power Company Limited topped the gainers’ list, with its share price rising by 6.28% in a single day. On the other hand, Keya Cosmetics faced the steepest decline, with its share price falling by 10%. The company attributed the drop to insufficient capital, which led to a temporary shutdown of its factory, although other operations remain active.
Continued Slump in SME Sector
The SME sector at the DSE also continued its downward trend, with the index dropping by 17 points in a single day.
Among the 18 listed companies in this segment, 13 recorded declines, four saw gains, and one remained unchanged.
DSE sees sharp fall as most stocks suffer price drops
This market performance reflects the ongoing challenges facing the stock market as investors remain cautious amidst economic uncertainty.
1 week ago
DSEX index gains over week, but banking sector remains weak
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), increased by 33 points over the past week, but the banking sector failed to regain momentum despite the rise in the index.
A weekly analysis of the DSE report reveals that during the five trading days, both the share prices and turnover in the banking sector declined.
The prices of shares of the 36 listed banks dropped by an average of nearly 5%.
Besides, turnover in the sector decreased by 8% compared to the previous week, reflecting waning investor interest.
Previously regarded as a safe investment, the banking sector has been losing the trust of general investors due to a persistent decline in its performance.
Over the past week, the number of shares traded in this sector dropped by 11.89%.
Read: Stock market was neglected for 15 years: DSE Chairman
Alongside this, most shares linked to S. Alam Group saw a downward trend throughout the week.
Apart from banking, the financial institutions sector also experienced a significant decline, with share prices falling by 29.85% during the week.
1 week ago
Dhaka, Chattogram stock markets fall on week’s last trading day
The Dhaka Stock Exchange (DSE) and Chattogram Stock Exchange (CSE) closed lower on Thursday, with major indices declining as most traded companies saw share prices falling.
The benchmark DSEX index of the Dhaka Stock Exchange fell by 10 points, closing lower for the day.
The Shariah-compliant DSES index dropped by 4 points, while the blue-chip DS-30 index declined by 6 points.
Out of 398 companies traded, 204 saw price declines, 105 posted gains, and 89 remained unchanged. A-category stocks performed similarly, with prices rising for 53 companies, falling for 119, and remaining static for 46.
In B-category stocks, prices increased for 29 companies, declined for 47, and stayed unchanged for 15. Among Z-category stocks, 23 companies recorded gains, 34 posted losses, and 28 remained unchanged.
Newly listed N-category stocks also suffered, with prices of all four companies declining.
Mutual funds fared slightly better, with 5 funds gaining value, 10 declining, and 22 remaining static. Meanwhile, one of two corporate bonds traded experienced a price increase, while the other saw a decrease.
Indices rise in Dhaka Stock Exchange, significant fall in Chattogram
In block market transactions, 29 companies traded 2.1 million shares with a total turnover of Tk 8.96 crore.
Sectoral Overview
The textile sector showed resilience, posting a 2.14% increase in prices. Banking, cement, and corporate bonds also saw slight gains. However, significant losses were recorded in the paper, IT, real estate and telecommunications sectors.
Of the 36 listed banks, 7 registered price gains, 10 experienced losses, and the remainder were unchanged. Midland Bank led the gainers in the banking sector, while Global Islami Bank topped the list of decliners.
Top Movers
Malek Spinning Mills emerged as the top gainer on the DSE, with its share price rising by 9.6%. In contrast, Oimex Electrode was the biggest loser, with its price dropping by 9.33%.
Turnover on the DSE decreased by Tk 57 crore compared to the previous day, with total transactions amounting to Tk 356.26 crore, down from Tk 413 crore.
CSE Performance
The Chattogram Stock Exchange mirrored the DSE's decline, with its overall index falling by 69 points. Among the 192 companies traded, 59 recorded gains, 104 experienced losses, and 29 remained unchanged.
CSE extends trading hours, faces opposition from brokers’ association
The CSE saw a total of 2.02 million shares traded in 1,802 transactions, with a turnover of Tk 5.67 crore.
Dividend Distribution
Seven companies distributed their declared dividends for the third quarter of 2024 on Thursday, though most dividends were lower compared to the same period in 2023.
ACI Limited declared a 20% dividend, down from 40% last year. United Power Generation and Distribution Company offered a 60% dividend, a decline from the 80% provided in 2023.
Other companies distributing dividends included Simtex Industries Limited and ADN Telecom Limited, both offering 10%, while Bengal Windsor Thermoplastic, Saiham Cotton Mills, and Saiham Textile each provided 5%.
Market Outlook
The week's closing trading session reflects ongoing volatility in both the Dhaka and Chattogram stock markets. While some sectors, like textiles, showed positive trends, the overall market sentiment remains subdued, with declining turnovers and broad-based losses across indices.
2 weeks ago
Indices rise in Dhaka Stock Exchange, significant fall in Chattogram
The Dhaka Stock Exchange (DSE) witnessed a rise in indices during the first hour of trading today, while the Chattogram Stock Exchange (CSE) faced a sharp decline.
On Thursday, the DSE's key index, DSEX, increased by 10 points within the first hour of trading.
Among the other indices, the Shariah-based DSES rose by 2 points, while the DS30, the blue-chip index, climbed by 1 point.
During this period, the DSE recorded a trading turnover of Tk 90 crore.
Read: DSE sees sharp fall as most stocks suffer price drops
Of the traded companies, share prices increased for 202, decreased for 72, and remained unchanged for 76.
In contrast, the CSE experienced a notable dip in its key index, the CSE All Share Price Index (CASPI), which fell by 32 points at the start of the day.
The CSE’s trading turnover in the first hour amounted to Tk 79 lakh.
Of the traded companies, share prices rose for 28, declined for 26, and remained unchanged for 7.
The contrasting trends in the two stock exchanges reflect a mixed start to the trading day across the country.
2 weeks ago
Stock market ends week amid fall
The Dhaka stock market ended the week with a decline in the index for all five trading days.
On Thursday, the benchmark index of the Dhaka Stock Exchange (DSE), the DSEX, fell by 8 points, closing at 5,133 points.
The blue-chip DS-30 index decreased by 4 points, while the Shariah-based DSES index dropped by 6 points.
Compared to the previous day, trading volume was reduced by Tk 43 crore. A total of 1,29,000 shares, worth Tk 363 crore, changed hands through 14.83 million transactions.
Along with the index decline, the share prices of most companies also fell. But 141 companies saw price increases, while 196 experienced price drops, and the share prices of 62 companies remained unchanged.
Among the companies in DSE's A-category, out of 220, 88 saw price increases, 96 saw price declines, and 36 remained unchanged.
In the B-category, 88 companies recorded price increases for 24 companies, while 53 saw price drops, and 11 stayed constant.
In the Z-category, 86 companies had 26 with rising prices, 46 with falling prices, and 14 that remained unchanged. Most mutual funds also saw a drop in their share prices. Out of 37 mutual funds, 7 experienced price increases, 12 had decreases, and 18 remained the same.
On Thursday, the DSE moved C & A Textile Company from the B-category to the Z-category.
A directive was issued to brokerage houses and merchant banks to refrain from providing any loans for purchasing shares of this company.
In another development, IFAD Autos PLC paid its dividend to investors for the July quarter of last year. This marked the lowest dividend payout by IFAD in the last decade, offering just 1% per share.
The downward trend continued in the Chittagong stock market as well. The Chittagong Stock Exchange's (CSE) CSE-50 index fell by 3.43 points, and the CSE-30 index dropped by 55.31 points, ending at 1,096.35 and 11,759.50 points, respectively.
Besides, the CSI index dropped by 5.14 points, closing at 934.59 points.
Alongside the decline, trading volume also decreased on the CSE.
Continuous decline in stock indices for four days
Compared to the previous day, turnover dropped by Tk 4.68 crore as the total turnover for the day was Tk 4.72 crore, down from Tk 9.40 crore in the previous trading session.
Out of the 178 companies and mutual funds listed on the CSE, 57 experienced price increases, 96 saw declines, and 25 remained unchanged.
Stock market sees early gains on week's final trading day
3 weeks ago
Continuous decline in stock indices for four days
The Dhaka Stock Exchange (DSE) witnessed its indices fall for the fourth consecutive day on Wednesday despite an increase in transactions.
At the close of trading, the DSEX, the prime index of the DSE, dropped by 8 points.
The blue-chip index DS30 fell by 6 points, while the Shariah-based DSES index declined by 1 point.
Out of the traded companies, share prices increased for 145 companies, decreased for 182 and remained unchanged for 69.
Rise in Turnover
Despite the drop in indices, turnover increased by Tk 55 crore compared to the previous day. A total of 1.43 lakh shares changed hands 1.69 crore times, resulting in a total turnover of Tk 406 crore.
Stock market opens on a positive note, majority companies see gains
Performance by Categories
In the A-category, comprising 217 companies, the prices of 54 shares rose, 127 fell, and 36 remained unchanged.
In the B-category, out of 89 companies, 41 witnessed price increases, 35 recorded declines, and 13 remained stable.
In the Z-category, involving 85 companies, 47 saw price hikes, 19 recorded falls, and 19 remained unchanged.
Dividend Declarations
Two DSE-listed companies announced dividend distributions to investors. GPH Ispat and JMI Syringes & Medical Devices declared 10% dividends each for their investments in 2024.
Downgrades to Z Category
The DSE has downgraded three companies—Sonali Life Insurance, Union Bank, and Sea Pearl Beach Resort—from the A-category to the Z-category.
Additionally, brokerage houses and merchant banks have been directed not to extend margin loan facilities for purchasing shares of these Z-category companies.
Stocks open strong but close lower on Dhaka bourse
Chattogram Stock Exchange Also Affected
The bearish trend was mirrored at the Chattogram Stock Exchange (CSE), where the CSCX index fell by 5 points. Of the 193 companies traded, 85 recorded price increases, 81 saw declines, and 27 remained unchanged.
Market Sentiment
The persistent decline in indices has raised concerns among investors, despite the uptick in transaction volumes.
Market analysts suggest that the downgrades and cautionary measures imposed by the exchanges may have contributed to the cautious sentiment.
Investors are urged to monitor developments closely and exercise prudence in investment decisions.
3 weeks ago