Stocks
Olympic Accessories Sees 78% Surge in Share Price Amid Acquisition Rumors
In a surprising turn of events, the publicly listed Olympic Accessories Limited, grappling with three consecutive years of losses, experienced a remarkable 78% surge in its share price over just 14 trading sessions. The company’s shares, trading at Tk11.5 each on November 30 at the Dhaka Stock Exchange (DSE), escalated to Tk20.5 by December 20. The share price modestly retreated to Tk18 on the subsequent Sunday.
This surge is not the first instance of an abnormal increase in the share price of the loss-making company; a similar uptick of 75% occurred in June this year when shares reached Tk17.4. Prior to this unusual surge, the shares remained at the floor price for over six months.
Market insiders attribute the recent spike to rumors circulating about a reputed garment accessories firm considering an acquisition of Olympic Accessories. However, in response to DSE’s inquiry, the company denied possessing any undisclosed price-sensitive information (PSI) that could have influenced the share price. Managing Director Golam Kibria dismissed the ownership-changing rumor as unfounded, asserting, “We have no such plans.”
Olympic Accessories has faced financial challenges due to a significant decline in purchase orders amid the global crisis, leading to consecutive losses. Kibria mentioned the management’s efforts to minimize losses in light of the challenging circumstances.
DSE reported that Olympic Accessories’ board of directors fell short of meeting the regulatory requirement of jointly holding a minimum of 30% shares, sparking the acquisition speculation. Currently, the board holds 25.81% shares, down from 44.43% at the end of the 2021-22 fiscal year, according to DSE data.
In the July to September quarter of 2023, the company reported a revenue of Tk37 lakh, compared to Tk1.26 crore in the same period the previous year. Despite efforts to curtail losses, the company incurred a loss of Tk1.42 crore during the quarter, up from Tk1.30 crore a year ago. The per-share loss amounted to Tk0.08, with a net asset value per share of Tk10.97 at the end of September 2023.
Listed on stock exchanges in 2015, Olympic Accessories has struggled to pay dividends to shareholders due to sustained losses.
Major General Mohammad Quamruzzaman (retd) has stepped down from his role as an independent director of the board of the Dhaka Stock Exchange, citing personal reasons.
He also served as a member of the DSE’s Nomination and Remuneration Committee (NRC).
Quamruzzaman was appointed to the DSE board on 1 September 2024, following the fall of the Awami League-led government. After serving for nearly one year and nine months, he submitted his resignation on Saturday (24 May).
Speaking to Quamruzzaman confirmed his resignation, saying, “Yes, I have resigned as an independent director for personal reasons.”
Md Shafiqur Rahman, Deputy General Manager of Public Relations and Publications at the DSE, said Quamruzzaman submitted a resignation letter mentioning personal reasons behind his decision.
“The DSE board will now take a decision regarding the resignation,” Shafiqur Rahman said.
He also indicated that Quamruzzaman may be planning to join another company, which could have influenced his decision to resign.
Earlier, another independent director of the DSE board, Shahnaz Sultana, also resigned from her position. She was likewise a member of the NRC.
According to the DSE annual report, Shahnaz Sultana is the CEO and Chief Consultant of FINS Alliance Risk Advisory and Consultancy and has served as the Founder and Chairperson of the WE Global Women Foundation since 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has today approved appointment of Ms. Nuzhat Anwar as the new Managing Director of Dhaka Stock Exchange PLC. (DSE).
Ms. Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia. Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.
Ms. Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana. She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy. Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.
Ms. Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.
On her appointment as the Managing Director of DSE, the Chairman of the Board of DSE Mr. Mominul Islam said, “We are pleased to receive the approval of BSEC for appointment of Ms. Anwar as the new Managing Director. Over the last one year the NRC and Board of have worked hard to recruit a competent leader as the MD of DSE. We are confident that Ms. Anwar, with her excellent leadership trait, vast experience in the financial sector in home and abroad and deep passion for transformation in the Capital Market of the Country, is the right candidate to lead DSE in the days ahead. Now, we will complete the internal processes to onboard Ms. Anwar at soonest.”
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
