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Dhaka, Aug 29: Shares of Information Services Network Ltd (ISN) have skyrocketed by more than 150 per cent in just three weeks on the Dhaka Stock Exchange (DSE), despite the company’s weak financials and repeated denials of having any undisclosed price-sensitive information.

The IT company’s stock jumped to Tk 105.7 on Thursday, up from Tk 42.2 on August 7, even though it reported a loss of Tk 1.86 million for the nine months through March this year. ISN distributed only a 0.50 per cent cash dividend for FY24, citing a meagre annual profit of Tk 1.34 million.

Adding to concerns, the firm’s sponsor-directors collectively hold just 21.47 per cent shares, far below the regulatory requirement of 30 per cent joint ownership.

Bourse warnings ignored

The unusual rally prompted the DSE to issue two show-cause notices last week, asking the company to explain the sharp gains. ISN replied both times that it had no undisclosed information to justify the price surge.

Despite the intervention, the stock soared another 45.6 per cent this week alone, making it one of the market’s top gainers.

Junk stocks dominate

ISN is not alone. Progressive Life Insurance and Zahintex Industries, along with four other ‘B’ category firms, also appeared in this week’s top 10 gainers’ list. Some of these companies have been inactive for years, providing no updated disclosures, yet their shares continue to rise even as the market remained subdued for three straight sessions.

Manipulation fears persist

Market analysts warn that the abnormal rise in low-performing and non-operational stocks suggests that manipulators remain active in the secondary market, despite tighter measures introduced by the new securities regulator.

“This is sending the wrong message to investors, as poorly performing or non-operational companies are significantly outperforming fundamentally strong firms,” one analyst observed.