Sharp Ind, Aamra Tech shares plunge after BSEC probe 

Infographics: TBS

Shares of Sharp Industries and Aamra Technologies have come under heavy selling pressure after the Bangladesh Securities and Exchange Commission (BSEC) directed the Dhaka Stock Exchange (DSE) to investigate abnormal price movements and trading activities.

Sharp Industries' share price has plunged 42.18% in 11 trading sessions to Tk25.50, while Aamra Technologies has dropped 28.14% in 14 sessions to Tk16.60.

BSEC officials, speaking to The Business Standard on condition of anonymity, said the commission instructed the DSE about two weeks ago to investigate the unusual rise in the companies' share prices and trading activities.

The DSE has since launched the probe and was asked to submit its findings to the commission within 30 working days.

The investigation will examine whether the shares were subject to market manipulation, coordinated or non-genuine trading, or insider trading involving unpublished price-sensitive information (UPSI). 

It will also assess whether the concerned stock brokers, dealers and authorised representatives (ARs) complied with the Margin Rules and relevant BSEC orders, notifications and directives, and whether they facilitated or failed to prevent suspicious trades or committed any other securities law violations.

BSEC has also asked the DSE to raise awareness among the ARs concerned, compliance officers and chief executive officers about suspicious trade execution and regulatory compliance.

Sharp Industries

According to DSE data, Sharp Industries' share price rose 156% from Tk17 on 15 June to Tk44.10 on 12 August. Amid the sharp rise, the DSE sought an explanation from the company on 11 August over the unusual movement in its share price and trading.

In response, Sharp Industries said there had been no significant change in its business or unpublished price-sensitive information (PSI) to explain the surge.

The stock later came under heavy selling pressure, falling 42.18% in 11 trading sessions to Tk25.50 today (30 August).

The sharp price movement came amid operational challenges at the textile spinning company. Power shortages have cut production by around 40%, from its 70-tonne daily capacity to about 42 tonnes.

With around 120,000 spindles, the production disruption has hit its financial performance. In the nine months to March, the company posted revenue of Tk257 crore but incurred a net loss of Tk65 crore. Its loss per share stood at Tk2.16, while NAV per share was Tk7.92.

The company, however, sees some positive prospects, including confirmed orders for six months, higher product prices, increased export incentives and easing pressure from India's anti-dumping measures. It expects improved power supply to boost capacity utilisation, help fulfil confirmed orders and potentially secure new ones as competitors face production constraints.

Aamra Technologies

Aamra Technologies' share price also experienced a sharp rally before the BSEC-ordered investigation.

The stock rose from Tk14.50 on 23 June to Tk23.10 on 9 August, gaining around 59% in less than two months. It subsequently fell 28.14% over 14 trading sessions to Tk16.60 today (30 August). The sharp price movement came despite the company's weak financial performance.

In FY2025, Aamra Technologies reported a loss per share of Tk3.17, while its NAV per share stood at Tk18.46. The company declared a 0.25% cash dividend.

Aamra Technologies engages mainly in IT infrastructure, networking, data centres, cybersecurity, cloud computing and enterprise technology solutions. It supplies hardware, software and technology-based services to government and private-sector organisations.

Listed on both the DSE and Chittagong Stock Exchange, the company trades under the ticker AAMRATECH.

The BSEC investigation will determine whether the sharp price movements in Sharp Industries and Aamra Technologies were driven by genuine market demand or involved manipulation, insider trading, broker-level irregularities or other violations of securities regulations.