The DSE sent letters to Yeakin Polymer and New Line Clothings on 12 February and 13 February, respectively, seeking their clarifications. However, neither of them had responded as of today (23 February)
New Line Clothings and Yeakin Polymer have yet to provide an explanation to the Dhaka Stock Exchange (DSE) regarding the recent unusual surge in their share prices.
The DSE sent letters to Yeakin Polymer and New Line Clothings on 12 February and 13 February, respectively, seeking their clarifications. However, neither of them had responded as of today (23 February).
This lack of communication has raised concerns among investors and market regulators about potential irregularities or undisclosed information influencing the stock movements, according to market insiders.
A senior DSE officer said the country’s premier bourse has emphasised the importance of timely disclosures to maintain market transparency and protect investors’ interests.
Failure to respond to such queries could lead to further scrutiny or regulatory action against the companies. Investors are advised to exercise caution and stay informed about any updates regarding the situation, he added.
New Line Clothings and Yeakin Polymer are both currently traded under the Z category, commonly referred to as junk stocks.
The DSE relegated them to this category due to their failure to pay dividends and hold annual general meetings (AGMs) on time, as required by securities regulations.
New Line Clothings
Its share price surged over 61%, reaching Tk12.10 between 30 January and 13 February. However, the price later declined due to profit-taking pressure from investors.
On Sunday, the stock closed Tk11.20 lower at 4.27%.
Listed on the capital market in 2019, the company last paid a 12.25% cash dividend in FY21, when it reported a net profit of Tk12.79 crore. Since then, it has failed to publish any financial reports, leaving investors in the dark about its current financial status.
According to the DSE, the company’s most recent update was on 5 October 2023, when it announced the relocation of its city office from Dhaka to its factory in Gazipur.
Yeakin Polymer
The company experienced an unusual 58% surge in its share price, reaching Tk13.40 between 30 December and 18 February. However, the price later declined due to profit-booking pressure.
On Sunday, the stock rebounded, jumping 9.30% to reach Tk14.10.
In July last year, its sponsors and directors transferred their shares to Kapita Packaging Solutions Limited after receiving approval from the securities regulator. The new owners subsequently appointed a chairman and managing director.
On 13 November, the company informed the DSE that it had been unable to approve its financial statements in board meetings due to the non-holding of AGMs since FY21.
It further stated that the new board has filed a petition seeking High Court approval to hold the pending AGMs in accordance with company law. https://www.tbsnews.net/economy/stocks/price-spirals-new-line-clothings-yeakin-polymer-ignore-dse-query-1076416
