Information Services Network Limited (ISN), a company mired in financial losses, has emerged as the top-performing stock on the Dhaka Stock Exchange (DSE) this week, defying fundamental weaknesses as investor speculation drives its share price sharply higher.
Over the past five trading days, ISN shares rose consecutively, climbing 45.59 per cent in value, the highest weekly gain among all listed companies. Each share surged by Tk 33.10, closing at Tk 105.70 on Friday, up from Tk 72.60 the previous week. In market capitalisation terms, the company gained Tk 36.15 crore (approximately £3.2 million) in just seven days.
The rally has continued unabated since 30 April, when the stock was trading at just Tk 33.70 per share. Over the past three and a half months, the price has skyrocketed by 213.65 per cent, turning a hypothetical Tk 10 lakh (Tk 1 million) investment into Tk 31.36 lakh, a paper profit of over Tk 21.36 lakh.
Speculative frenzy amid financial losses
Despite this dramatic run-up, the company’s underlying financial health remains weak. According to its most recent audited financial statements for the nine months ending March 2025, ISN reported a net loss of Tk 18.08 lakh (approximately £16,000), or 17 paisa per share. There is no indication of an imminent turnaround in operations.
The DSE has flagged the surge as "abnormal", and the Bangladesh Securities and Exchange Commission (BSEC) has directed the exchange to investigate the unusual price movement. However, regulatory scrutiny has so far failed to dampen investor enthusiasm.
Analysts warn that the rally appears to be driven purely by speculative trading rather than fundamentals.
“This is a classic case of momentum investing detached from reality,” said a Dhaka-based market analyst who requested anonymity. “Investors are chasing price gains without considering the company’s profitability, dividend history, or business model.”
Modest dividend history, low capital base
Listed in 2002, ISN has a paid-up capital of just Tk 10.92 crore, with a total of 10.92 million shares outstanding. Directors and promoters hold 21.47 per cent of the equity, while institutional investors own 9.79 per cent, and the remainder is held by retail investors.
Despite its weak earnings, ISN paid a 1.5 per cent cash dividend for the fiscal year ending June 2024, a modest return by market standards. Dividend payouts in previous years have been inconsistent, ranging from 1 per cent to 3 per cent, indicating limited capacity for shareholder returns.
Other gainers in the market
ISN was not alone in posting strong gains. Last week’s top performers included:
Trust Islami Life Insurance: +32.70 per cent
Energypack Power Generation: +32.35 per cent
Progressive Life Insurance: +29.13 per cent
Monno Fabrics: +23.90 per cent
Sonali Paper: +22.36 per cent
Paramount Textile: +21.10 per cent
Sino Bangla Industries: +18.81 per cent
Shahjibazar Power: +18.78 per cent
Zahin Textile: +18.00 per cent
Many of these stocks also belong to sectors with mixed financial performance, suggesting a broader trend of speculative activity across the DSE.
Regulators on watch
With BSEC monitoring the situation, market insiders expect increased scrutiny on small-cap and loss-making stocks that show disproportionate price movements. The commission has previously intervened in cases of suspected price manipulation.
Nonetheless, for now, momentum remains on the side of bulls and ISN, despite its losses, stands at the top of the market’s popularity chart.
“It’s not about profits anymore,” said one retail investor. “It’s about who gets in and out first.”