DSE asked to investigate unusual price hike of Islami Bank share

The Dhaka Stock Exchange has been asked to inquire into the unusual movement of share prices of Islami Bank Bangladesh PLC.

The directive came from the Bangladesh Securities and Exchange Commission today as share prices of the Shariah-based bank continued skyrocketing since August 7, two days after the ouster of Sheikh Hasina government following a student-led mass uprising.

Share price of Islami Bank closed at Tk 70.4 today, up from Tk 32.6 on August 6 after Bangladesh Bank restructured the board of the oldest Shariah-based bank controlled mainly by Chattogram-based S Alam Group, which is alleged to be a beneficiary of the previous Awami League government.

The BSEC said the price and volume of shares of Islami Bank fluctuated significantly in recent times, which seems 'unusual and suspicious'.

As such, the commission instructed the DSE to investigate into the trading of Islami Bank shares from August 6 to September 25 to identify the reasons, including market manipulation, insider trading and other market abuses, if any, behind such unusual movement of the scrip.

The premier bourse has been ordered to submit an investigation report to the Surveillance Department of the BSEC within 30 working days from the date of issuance of this letter.