The share price of Bangladesh Shipping Corporation (BSC) has jumped 112 per cent in 10 trading sessions following the company's 'corporate declaration'.
The company's per share price rose to Tk 104.60 on Thursday which was Tk 49.40 on December 23.
The company's price hike was observed after it made a corporate declaration on December 23 regarding earnings and dividend for the year ended on June 30, 2021.
Following the abnormal price hikes of any listed company, the stock exchanges normally make query to know whether there is any undisclosed price sensitive information behind the price hike.
The Dhaka Stock Exchange (DSE) has not yet made any query following the BSC's price hike.
Asked, a senior DSE official said the company saw price hike due to an overall demand created following its corporate declaration.
"The company's P/E ratio declined significantly following the rise in EPS. That's why, the company saw such price hike," the DSE official said.
He said the DSE makes query when an individual or a group of individuals play role behind the abnormal price of a listed company.
"But the BSC's share price rose due to full market demand. Nevertheless, the DSE will observe the issue," the official said.
The officials of the securities regulator could not be reached to make comment on the continuous price hike of the BSC's shares.
For the fiscal year 2020-21, the company saw a rise of 73.67 per cent in profits due to decrease in shipping operational expenses.
For the said year, the corporation has reported EPS of Tk. 4.72, NAV per share of Tk. 60.28 and NOCFPS of Tk. 12.78 for the year ended on June 30, 2021 as against Tk. 2.72 Tk. 56.03 and Tk. 8.10 respectively for the same period of the previous year.
The corporation's board of directors has recommended 12 per cent cash dividend for the year ended on June 30, 2021.
The BSC, presently an 'A' category company, was listed on the stock exchange in 1977.
The government holds 52.10 per cent shares of the company, while institutes and general public hold 24.30 per cent and 23.60 per cent shares respectively.