Shyampur Sugar shares resume trading after one-day suspension, fall 8.75%
The DSE said its principal objective was to ensure equal access to information for all investors and maintain orderly market conditions.
Trading in Shyampur Sugar Mills resumed on the Dhaka Stock Exchange today (14 June) after a one-day suspension imposed over an unusual surge in the company's share price, with the stock falling 8.75% to Tk218 following the reopening.
The DSE had suspended trading in the company's shares on Thursday, citing its regulatory authority to intervene in cases of abnormal price movements or suspicious trading activity in order to protect investors and ensure fair price discovery.
The exchange said the suspension was necessary because the recent rally in Shyampur Sugar's share price was not aligned with the company's financial and operational condition and warranted further examination for possible market manipulation or undisclosed price-sensitive information.
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Market participants also noted that the sharp increase in the share price was inconsistent with the company's underlying fundamentals. According to market data, Shyampur Sugar Mills has remained completely inactive in sugar production since fiscal 2020-21 because of prolonged losses and outdated machinery.
The DSE said its principal objective was to ensure equal access to information for all investors and maintain orderly market conditions.
Under stock exchange regulations, trading can be suspended if listed companies fail to comply with reporting requirements, violate corporate governance rules, or fail to disclose material information, including operational shutdowns, loan defaults, or significant legal issues.
Brokerage firms, however, argue that while monitoring unusual price movements is necessary, suspending an entire stock may not always be the most effective approach. They suggest that regulators should instead focus on identifying suspicious Beneficial Owner (BO) accounts involved in potential manipulation.
The DSE said the company has been asked to provide explanations and supporting documents for the unusual price movement. A final decision on future trading will be made based on the company's response and the outcome of the investigation.
Overall, the case highlights the regulator's efforts to maintain market transparency and protect investors, even as such actions temporarily affect trading sentiment.
