The Dhaka Stock Exchange (DSE) has served a formal query to Taufika Foods & Lovello Ice-cream PLC after an unusual surge in its share price over the past month. Despite no disclosed corporate developments or price-sensitive information, Lovello’s share price rose approximately 29% between late May and mid-June 2025. According to market data, Lovello’s share price jumped from Tk 79.20 on May 20 to over Tk 102 by June 14, catching the attention of investors and regulators. Additionally, the stock was consistently among the top turnover leaders for multiple sessions, even though the company had not released any new corporate announcements or financial updates. In response to the DSE’s inquiry, Lovello issued a statement confirming that there were no undisclosed price-sensitive issues behind the sharp price movement. The company emphasized that it was unaware of any internal factors or pending developments that could explain the sudden investor interest and trading volume. Market analysts view this surge as part of a broader pattern of speculative behavior seen in small-cap and mid-cap stocks. Inactive stocks, like Lovello, occasionally experience rapid rallies, often without strong underlying fundamentals. This behavior raises concerns about market manipulation or coordinated trading, prompting the DSE to increase its monitoring efforts. This is not the first time Lovello has faced such scrutiny. In early 2022, the company experienced a similar price rally of 42% in just four days, which also triggered a DSE query. Though no wrongdoing was found at the time, it raised questions about speculative trading patterns and investor risk. The current query highlights the DSE’s commitment to maintaining market transparency and investor protection. If irregularities are found, the exchange may take further action, including requesting detailed trade reports or involving the Bangladesh Securities and Exchange Commission (BSEC). For retail investors, this serves as a timely reminder to exercise caution and avoid jumping into rising stocks without understanding the fundamentals. While market excitement may temporarily push a stock higher, such movements often correct sharply if they are not supported by real business growth. As of now, Lovello maintains its stance that the share price hike is entirely market-driven. The coming days will show whether the rally stabilizes, corrects, or prompts further regulatory response.
