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.
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
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
