In what appears to be a textbook case of stock market manipulation, GQ Ballpen — a company struggling with persistent losses and weak financial fundamentals — has seen its share price soar at a staggering pace, baffling analysts and alarming investors.
The company’s shares recently closed at Tk 572.40, marking an 18% increase in just one week, and placing GQ Ballpen at the top of the Dhaka Stock Exchange’s (DSE) weekly gainer list. But a closer look under the hood reveals a very different story — one of continuous losses, weak earnings, and questionable valuation.
Despite reporting losses for three consecutive fiscal years, GQ Ballpen’s stock continues its inexplicable rally. According to audited financial statements, the company posted a loss per share of Tk 3.50 in 2024, Tk 0.12 in 2023, and Tk 2.65 in 2022. Even more puzzling, the company declared cash dividends — 3% in 2024 and 2.5% in each of the two previous years — raising questions about the logic and legality behind such moves given its financial state.
Market experts warn that there is no investment logic behind the rising price of GQ Ballpen. With a negative P/E ratio and fragile financials, the stock should be trading at a discount, not at a premium. However, with a paid-up capital of only Tk 8.93 crore, the stock remains an easy target for manipulators, who appear to be inflating prices by creating artificial demand and limited supply.
“This is a classic pump-and-dump setup,” said a Dhaka-based market analyst. “Once the price is high enough, manipulators dump their holdings on unsuspecting retail investors. It’s not just unethical — it’s dangerous.”
The disparity becomes even more glaring when compared to Bangladesh Shipping Corporation (BSC), a state-owned company in the same sector. BSC, known for strong fundamentals, paid a 25% cash dividend in 2024, and posted an EPS of Tk 14.28 in the first three quarters of FY2025. Despite this strong performance, its share is trading below Tk 120 — far less than GQ Ballpen’s inflated price.
“How does a company with real earnings and strong fundamentals trade at one-fourth the price of a loss-making firm?” questioned another investor. “The imbalance is shocking.”
Frustrated investors are now turning their attention to regulators. Both the Bangladesh Securities and Exchange Commission (BSEC) and Dhaka Stock Exchange (DSE) are under fire for what many describe as a failure to act.
“It’s happening right in front of their eyes, yet they do nothing,” said one disgruntled retail investor. “When retail investors lose money and manipulators walk away with massive profits, only then do we see token fines or showpiece investigations.”
Experts say that nominal penalties do little to deter well-connected manipulators. “In fact, these light fines act as a green signal for future manipulations,” said a financial governance expert. “Unless the BSEC and DSE take decisive, punitive action, the market will continue to be hijacked by insiders — and ordinary investors will keep losing.”
To restore trust and integrity in the market, analysts and investors are calling for:
- Strict enforcement of anti-manipulation rules
- Criminal prosecution of offenders
- Transparency in trading patterns
- Stronger disclosure requirements
- Greater surveillance of low-cap stocks
Without such steps, the stock market risks becoming little more than a playground for manipulators — where profits are privatized and losses are socialized among retail investors.
