Shares of Saiham Textile Mills Ltd and ACME Pesticides Ltd have recorded sharp and unusual price increases over just seven trading sessions, prompting stock exchanges to seek explanations from the companies and issue cautionary notices to investors.

Saiham Textile, a listed company in the textile sector, saw its share price rise by more than 40% in seven trading days. According to Dhaka Stock Exchange (DSE) data, the stock climbed from Tk 18.80 on July 26 to Tk 26.40 on August 6, gaining Tk 7.60 or 40.42%.

The surge was accompanied by a significant increase in trading activity. Concerned over the unusual movement in both price and turnover, the DSE sent a letter to the company on August 6 seeking an explanation.

In response, Saiham Textile said it had no undisclosed price-sensitive information (PSI) that could explain the sharp rise in its share price or trading volume. The company also indicated that there had been no major change in its business operations or financial position that would justify the sudden increase.

ACME Pesticides also experienced a substantial price jump during the same period. Its shares rose from Tk 21.10 on July 26 to Tk 26.30 on August 4, representing an increase of Tk 5.20 or 24.64% in seven trading sessions.

The Chittagong Stock Exchange (CSE) sought an explanation from ACME Pesticides on August 4 following the unusual movement in its share price and trading volume.

The company likewise informed the exchange that it had no undisclosed PSI that could have influenced the stock’s price or trading activity.

Despite the companies denying any undisclosed information, the exchanges considered the price movements unusual and issued cautionary notices for investors.

Market observers often consider sharp price increases accompanied by abnormal trading volumes, particularly in relatively small-cap stocks, as a potential warning sign requiring closer monitoring.