Orion Infusion's share keeps rising sans PSI

Orion Infusion is witnessing an 'abnormal' hike in its share price and increase in volume of the company's securities transacted in recent weeks though there is no undisclosed price sensitive information (PSI) to justify the same.
Within a month, Orion Infusion's share price jumped more than 42 per cent or Tk 38.90 each to close at Tk 132.30 on Thursday at the Dhaka Stock Exchange (DSE) in the volatile market. It was also more than two years' highest closing price.
The company's share price was Tk 93.40 a month earlier on July 5, 2022. Its shares were traded between Tk 65.80 and Tk 132.90 in the last two years, the DSE data showed.
Following the 'abnormal' price hike, the DSE served show-cause notice on the company on Wednesday.
The company, however in a knee-jerk response, informed the DSE on Thursday that there is no undisclosed PSI of the company for the recent unusual price hike.
Even after being served show-cause notice, the company's share price has not stopped rising and jumped 5.42 per cent further on Thursday, which may hit 'innocent' investors, said an analyst at a leading brokerage firm.
The investors should be cautious about buying overvalued stocks in order to avert any misfortune and safeguard their investments, he said.
Share prices of many companies are on the rise at present, although transaction and price movement of these companies' shares do not match their fundamentals, he observed.
Some companies with low performance records also made their way into the top gainers' list of the DSE frequently, riding on a rumour that the investors are putting money in the securities, he mentioned.
"Influential investors by disseminating rumours are trying to manipulate the prices of many companies' shares to make quick-profit," he added.
He said the investors are chasing these stocks without conducting any proper analysis, as they see continuous rise in values.
"If these stocks face corrections, general investors will be the ultimate losers, which will dent their confidence," he cautioned.
However, senior officials of Orion Infusion could not be reached over telephone on the day.
The company's nine months earnings per share stood at Tk 1.43 for July 2021-March 2022 as against Tk 1.12 for July 2020-March 2021.
Listed in 1994, Orion Infusion disbursed 10 per cent cash dividend in 2021. In 2020, it also provided a 10 per cent cash dividend.
The company's authorised capital is Tk 1.0 billion and paid-up capital is Tk 203.60 million while total number of securities is 20.36 million.
Sponsor-directors own 40.61 per cent stake in the company while institutional investors own 16.76 per cent, foreign investors 0.19 per cent and the general public 42.44 per cent as of June 30, 2022, the DSE data showed.

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