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The Financial Express

Fortune Shoes' share keeps rising sans PSI

| Updated: January 20, 2022 10:30:24


Fortune Shoes' share keeps rising sans PSI

Fortune Shoes, a listed footwear manufacturer, is witnessing an unprecedented price hike and increase in volume of shares despite no undisclosed price sensitive information (PSI).

Within two weeks, the shoe maker's share price jumped over 40 per cent to close at Tk 129.30 on Monday at the Dhaka Stock Exchange (DSE).

Its share price also soared 570 per cent or Tk 110 each in the last one year since January 18, 2021, according to statistics from the DSE.

Following the recent 'abnormal' price hike, the DSE served show-cause notice on the company on Monday.

The company, however in a knee-jerk response, informed the DSE that there is no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares.

Even after being served show-cause notice, the company's share price has not stopped rising and gained 1.65 per cent further on Monday, which may hit innocent investors, said an analyst at a leading brokerage firm.

Some analysts are saying that the company's share price is rising fast and the regulator should investigate whether there is any wrongdoing from manipulators.

Fortune Shoes, listed on local stock markets in 2016, has posted an impressive 200 per cent profit growth for July-September 2021 compared to the same period a year earlier.

The company has reported earnings per share (EPS) of Tk 1.29 for July-September 2021 as against Tk 0.43 for July-September 2020.

Senior executives of the company could not be reached over the telephone.

The investors should also be cautious on buying overvalued stocks in order to avert any misfortune, according to a leading broker.

Share prices of some companies are on the rise, although transaction and price movement of these companies' shares do not match their fundamentals, he said.

He noted that some influential investors by disseminating rumours are trying to manipulate the prices of shares of many companies.

"The investors need to be cautious and should not pay heed to any rumours related to companies and take their investment decisions prudently," he added.

The company disbursed 10 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2021. In 2020, the company disbursed 5.0 per cent cash and 5.0 per cent stock dividend.

The company's paid-up capital is Tk 1.54 billion and authorised capital is Tk 2.50 billion, while the total number of securities is 154.79 million.

The sponsor-directors own 30.93 per cent stake in the company, while institutional investors own 16.45 per cent and the general public held 52.62 per cent as on December 31, 2021, the DSE data showed.

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