Sonar Bangla Insurance Limited, which is doing business in the general insurance sector, was the top worst stock for Wednesday at the Dhaka Stock Exchange (DSE) although it declared the highest dividend in the last six years.
At the end of the DSE trading session, its share price fell 8.70% to Tk106 each and became a top loser among the listed companies.
On Tuesday evening, its board of directors recommended a 15% cash dividend for the shareholders for the financial year 2020.
The company will hold an annual general meeting on 23 September to approve the dividend and financial report. The record date has been set for 27 July.
Last year the company reported an 11% year-on-year growth in the consolidated earnings per share to reach Tk2.09.
In the first quarter of this year, its earnings per share also increased by 17% to Tk1.39, compared to the previous year at the same period.
Sonar Bangla Insurance also decided to purchase 1.95 lakh shares at Tk100 each from Rawsonara Begum, a shareholder of Sonar Bangla Capital Management Limited, a subsidiary of the insurer.
Earlier, between 4 April and 9 June, its share price jumped 185% to Tk121.80 at the DSE.
The country's premier bourse has sent several letters to the company asking to know the reason for the unusual price hike. But the company said on the DSE query that it had no undisclosed information for the recent price hike.
Currently, sponsors and directors jointly hold 36.78%, institutional investors 12.80% and general investors 50.42% shares of the company.