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 last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
