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The Financial Express

Fortune Shoe's share price rising sans PSI

| Updated: June 09, 2021 15:44:08


Fortune Shoe's share price rising sans PSI

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

Within the four trading days, the shoe maker's share price jumped more than 45 per cent to close at Tk 31.40 on Monday at the Dhaka Stock Exchange (DSE). It was also the one year highest closing price.

The company's share price was Tk 21.60 each on June 1, four trading days ago.

Following the '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 and overall market fall, the company's share price has not stopped rising and soared 9.79 per cent further on Monday, which may hit innocent investors, said an analyst at a leading brokerage firm.

Market analysts said the investors should not pay heed to any rumours related to companies and take their investment decisions prudently.

They advised investors to make their investment decisions based on the company's fundamentals, technical analysis and disclosed information.

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

The Fortune Shoes has reported third quarter (Q3) earnings per share (EPS) of Tk 0.41 for January-March, 2021 while the company incurred a loss of Tk 0.43 per share in the same quarter a year ago.

The company's EPS for nine months until March 2021 stood at Tk 1.05 as against Tk 0.61 for July 2019-March 2020.

The net operating cash flow per share (NOCFPS) was Tk 0.74 for July 2020-March 2021 as against Tk 0.83 for July 2019-March 2020.

The net asset value (NAV) per share was Tk 13.70 as on March 31, 2021, and Tk 13.63 as on June 30, 2020.

The company, which was listed on the DSE in 2016, disbursed 5.0 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2020.

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 11.77 per cent and the general public held 57.30 per cent as on April 30, 2021, the DSE data showed.

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