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Eastern Lubricant's price soaring sans PSI

Share price jumps 27pc in a month despite bearish market

FE Report | April 01, 2019 00:00:00

Share price of state-run Eastern Lubricants was soaring despite having no price sensitive information (PSI).

Despite the country's capital market passing a bearish trend throughout the month amid low trading activities, the company's share price continued to rise.

In the last one month, the share price of Eastern Lubricants share price jumped 27 per cent or Tk 337 each to close at Tk 1,597.30 each on Sunday at the Dhaka Stock Exchange (DSE).

The company's share price was Tk 1,260.10 each a month ago on March 03.

In the last one year, its share price traded between Tk 965 and Tk 1,759 on the DSE.

Following the recent 'abnormal' price hike, the prime bourse served a show cause notice to the company.

However, the company in a knee-jerk response informed the DSE on Sunday that there is no undisclosed price sensitive information for recent unusual price hike of its shares.

Even after serving of show cause notice, the share price of the company rose further by 6.24 per cent or Tk 94 each on Sunday.

The company, which was listed with the DSE in 1976, disbursed 100 per cent cash dividend for the year ended on June 30, 2018.

As per un-audited financial statements, its earnings per share (EPS) plunged to Tk 1.34 for October-December, 2018 as against Tk 16.11 for October-December, 2017.

In six months for July-December, 2018, the EPS was Tk 2.99 as against Tk 14.80 for July-December, 2017.

The net operating cash flow per share (NOCFPS) was Tk 138.03 for July-December, 2018 as against Tk 92.27 for July-December, 2017.

The net asset value (NAV) per share was Tk 172.30 as on December 31, 2018 and Tk 169.31 as on June 30, 2018.

"The earnings per share plunged due to decrease in revenue and net operating cash flow per share increased due to decrease in accounts receivable," the company said in a statement.

The state-run company's paid-up capital is only Tk 9.94 million and authorised capital is Tk 50 million while the total number of securities is 994,000.

The sponsor-directors own 0.10 per cent stake in the company while the government owns 51 per cent, institutional investors own 21.50 per cent, and the general public 27.40 per cent as on February 28, 2019, the DSE data shows.

Share price of Kay & Que is also soaring "abnormally" without any PSI.

The company's share price rose 20 per cent or Tk 40 each in the last one month to close at Tk 239.70 on Sunday. Its share price was Tk 199.80 a month ago on March 03.

Following the recent 'abnormal' price hike, the DSE also served a show cause notice to the company.

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