United News of Bangladesh

Share market analysts have raised a red flag over potential manipulation, with four listed companies with halted or suspended production continuing to trade on the market. Halted or suspended production implies a status in which firms are not generating any revenue. Investing in such firms should not be recommended, said the share market analysts, warning particularly small investors to remain cautious about such companies. “Many traders could knowingly invest in these risky companies for quick profits,” said Tariqul Islam, a long-time investor in the Dhaka share market. Some of these traders could have insider information, enabling timely buying and selling, he said. “But small investors, driven by the greed to make quick bucks, often end up getting trapped with their investment,” he said. For instance, shares of Aramit Cement Limited, which faced struggles operating ever since the Covid-19 pandemic hit, are currently being traded at Tk 11.70 each. In a recent inspection by the Dhaka Stock Exchange (DSE) it was revealed that the cement factory had remained non-operational since before last July. Despite repeated warnings from the DSE, the company’s shares continue to be traded, with significant trading recorded on August 24 and September 3. Govt initiative needed to restore trust of share market investors: Khosru Trading of shares of New Line Clothings Limited continued despite share manipulation taking place involving the company. A share of the company is currently being traded at around Tk 5. The share price had soared to Tk 26 a year ago. A recent probe by the Bangladesh Securities and Exchange Commission (BSEC) revealed that manipulation worth hundreds of crores occurred involving the New Line shares in 2021. In September this year, the BSEC fined five investors Tk 13.33 crore for their involvement in the New Line share manipulation. The New Line shares continue to trade actively in the Z-category, which indicates the company’s inability to give dividends to its shareholders. Currently, 30% of the New Line shares are held by the company’s sponsors and directors, while the rest 70% shares are owned by institutional and individual investors. “These kinds of stocks are like a thorn in the investors’ side,” said Asaduzzaman Asad, branch manager of a Motijheel-based brokerage house. “The regulator should introduce a mandatory buyback law compelling non-performing companies to repurchase their shares. Otherwise, investors will keep falling into these traps,” he added. Another non-operational company, Nurani Dyeing & Sweater Limited, has seen its share price fluctuate between Tk 2.40 and Tk 5 over the past year. Although its operations have been suspended since July, trading in its shares continues. Banks’ additional investment term in share market extended for a year When asked why investors remain interested in such companies, some traders said investors with prior losses are desperate to make financial recoveries. “Low-price shares tempt particularly small investors. Many think it’s worth taking the risk to profit more with less investment,” one investor commented. Ratanpur Steel Re-Rolling Mills Limited (RSRML) has also stopped production since the beginning of the year. Nevertheless, the company’s shares are still being traded, though their price dropped from Tk 15 to Tk 8 in a year. Market analysts warn that the continued presence of such non-performing firms poses a serious risk to market stability. “In the past 15 years, many weak companies were granted IPO approvals. Some of the companies ceased production or even disappeared. Allowing such companies to list discouraged quality firms from entering the market, giving manipulators a free rein,” said Minhaj Mannan, director of the DSE. Investment Corporation of Bangladesh (ICB) chairman Abu Ahmed, however, is still hopeful, saying that several fundamentally strong companies are expected to be listed next year. “Once good companies come to the market, investors’ confidence will naturally improve. The market will be vibrant,” he added.

BNP senior leader Amir Khosru Mahmud Chowdhury on Saturday alleged a political quarter is discussing how to manipulate the next election in the name of dialogue on the reconstitution of the Election Commission (EC). “The President has initiated a dialogue. What are they discussing? A political quarter of those who rigged votes in 2009, 2014 and 2018 are discussing how they will manipulate votes in the next election,” he said. Speaking at a rally, the BNP leader warned that people are closely observing those who engaged in rigging votes in different elections over the last 13 years. “I would like to tell the vote manipulators to come to the right path.The people of Bangladesh have woken up and they will catch the vote snatchers. They’ll be boycotted socially,” he said. Brahmanbaria district unit BNP arranged the rally at Battoli Bazar under Sadar Upazila demanding party Chairperson Khaleda Zia’s unconditional release and her treatment abroad. The party was scheduled to hold the rally in front of Fulbaria Convention Centre. As the district unit Bangladesh Chhatra League also announced to hold a rally at the same venue and time, the local administration imposed section 144 in the area. Read: Talks on EC to go nowhere: BNP As a huge number of BNP leaders and activists started taking positions at different points of the district town, BNP shifted its rally to Battoli Bzar which was out of the purview of the restriction. Speaking at the rally, Khosru, a BNP standing committee member, said there is no point in imposing section 144 to foil BNP’s rally as their party leaders and activists breached it in different districts earlier. “Those days of restricting BNP with section 144 have gone. This section (144) did not come into effect in Brahmanbaria like other areas,” he said. The BNP leader said the government will no longer be able to resist BNP as a mass wave has been created in favour of the party. “When the tide starts, it can’t be stopped.” BNP chairperson’s adviser Abul Khair Bhuiyan, its international affairs secretary Rumeen Farhana, MP and finance secretary Engineer Khaled Hossain Mahbub Shyamol, among others, addressed the rally. A tense situation was prevailing in the district since morning following the announcement of two rival partíes' similar programmes at the same venue, vehicular movement was disrupted due to the restriction, causing public sufferings. Read: BNP trying to reach out to anti-govt parties to forge a greater unity Braving the restriction, BNP leaders and activists joined the rally in small processions, but no untoward incident happened due to the strong presence of around 600 law enforcers at 52 points of the district town. Police obstruction Police reportedly stopped Rumeen Farhana’s car near Ashuganj-Bhairab Bridge around 12 noon while she was going to join the rally. Being obstructed, she took a position at Ujan Bhati Hotel in Ashugan. She, however, was allowed to go to Brahmanbaria Sadar upazila to take part in the rally around 2:30pm.