In Bangladesh’s stock market, several low-performing and inactive companies have recently seen a significant surge in their share prices. For instance, Khulna Printing, a listed but completely non-operational company, had its shares traded at Tk 7 on December 22 but skyrocketed to Tk 15.70 within just 15 trading days—a 125% increase. On January 8, its price increased by the maximum limit allowed under circuit breaker rules, and shares remain in demand despite no sellers, as investors anticipate further profits.

This trend isn’t limited to Khulna Printing; companies like Munno Fabrics show similar patterns. Despite offering minimal dividends, their shares are gaining value. Interestingly, Khulna Printing, classified as a “Z category” or failing company by the Dhaka Stock Exchange (DSE), has had its factory and office closed since February 2023, with no representatives to comment on the price hike.

Investors are also gravitating towards “penny stocks,” such as FAS Finance, Yakin Polymer, Western Marine Shipyard, and others, as well as controversial shares like Khan Brothers PP Woven Bag Industries, Aman Feed, and Dhaka Dying. Since the start of the year, share prices of 22 companies have increased between 10% and 85%, with nine penny stocks among them. Khan Brothers PP Woven Bag Industries, for instance, saw a 36% rise in its share price, now trading at Tk 189.

Conversely, 256 companies experienced a price drop of 1% to 16% over seven trading days, whereas 72 stocks showed price growth, with 26 of these being penny stocks. Analysts attribute this trend to manipulative practices, where individuals inflate the prices of low-demand shares during a bearish market by spreading embellished company news. This was observed in the case of Western Marine Shipyard, as confirmed by brokerage officials.

DSE Director Minhaz Mannan Emon explained that such practices are a long-standing issue in Bangladesh’s stock market. When quality shares lose appeal, weaker stocks often gain traction due to manipulation by groups exploiting relaxed regulatory oversight during market downturns.