Share prices of three cos soaring sans PSI
FE Report | Wednesday, 28 March 2018
Share prices of three companies - Wata Chemicals, Salvo Chemical Industries and Reckitt Benckiser - were soaring despite having any price sensitive information (PSI).
"Even after serving of show cause notices, the prices of these companies continued to rise, which may hit the investors" said an analyst at a leading brokerage firm, preferring anonymity.
He advised the investors to be careful about the unusual price hike of the low-cap companies.
In the last eight trading sessions, the price of Wata Chemicals jumped more than 24 per cent or by nearly Tk 65.20 each to close at Tk 338.80 on Tuesday at the Dhaka bourse. The company's share price was Tk 273.60 each on March 13.
Following the recent 'abnormal' price hike, the Dhaka Stock Exchange (DSE) served a show cause notice to the company.
However, the company informed the DSE Tuesday that there is no undisclosed price sensitive information for the recent unusual price hike of its shares.
The company's paid-up capital is Tk 91.22 million and authorised capital is Tk 150 million while the total number of securities is 9.12 million.
The sponsor-directors own 36.41 per cent stake in the company while the institutional investors own 37.49 per cent and the general public 26.10 per cent as on February 28, 2018, the DSE data shows.
The company, which was listed with the DSE in 1992, disbursed 10 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2017.
The share price of Salvo Chemical also jumped abnormally in recent days.
The company's share price soared 15 per cent to close at Tk 25.90 each within a week without any price sensitive information. The company's share price was Tk 22.50 each on March 13.
Following the recent abnormal price hike, the DSE had also served show cause notice to the company.
However, the company informed the DSE Tuesday that there is no undisclosed price sensitive information for recent unusual price hike of its shares.
Salvo Chemical, which was listed with the DSE in 2011, disbursed only 5.0 per cent stock dividend for the year ended on June 30, 2017.
The company's paid-up capital is Tk 619.26 million and authorised capital is Tk 1.50 billion, while the total number of securities is 61.92 million.
The sponsor-directors own 22.14 per cent stake in the company while the institutional investors 12.16 per cent and the general public 65.70 per cent as on February 28, 2018, the DSE data showed.
The share prices of Reckitt Benckiser soared 14.89 per cent or Tk 233.20 each in the past seven trading sessions to close at Tk 1973.80 on Tuesday. Its share price was Tk 1,718.60 on March 13.
Following the abnormal price hike, the DSE had also served a show cause notice to the company.
The company informed the DSE Tuesday that there is no undisclosed price sensitive information for recent unusual price hike of its shares.