Legacy Footwear to the top of DSE gainers' chart despite heavy loss in business
Investors seem to have overlooked the latest business data of Legacy Footwear when they bet on the stock on the Dhaka Stock Exchange last week.
The stock rose abnormally in the bearish market, leading to it becoming the top gainer in the last three consecutive sessions.
However, Legacy Footwear reported a hefty loss in its latest disclosure for October-December (Q2) quarter of the FY23.
Its share price jumped 33 per cent or Tk 13.90 each in total in the last four sessions and finally closed at Tk 56.20 on Thursday.
The premier bourse on the day made a query to know the reasons behind the sudden price hike.
In response, the company informed that there was no undisclosed price sensitive information that could trigger the increased share transactions.
Legacy Footwear was the number one gainer on Wednesday, the day it saw a price increase of 8.03 per cent on the DSE.
The day before, the stock advanced 10 per cent and topped the gainers' chart.
It exhibited a similar trend in the four sessions through March 7. The share price advanced 30 per cent at the time.
Legacy Footwear was in the red in the second quarter of the ongoing fiscal year due to a steep fall in turnover, compared to the same quarter of the previous fiscal year.
The turnover plunged to Tk 0.41 million in Q2, FY23 from Tk 33.43 million in Q2, FY22.
The company counted a loss of Tk 2.24 million in Q2, FY23 against a profit of Tk 0.46 million a year ago.
Its net operating cash flow per share (NOCFPS) was Tk. (0.21), a negative
value, in the six months through December 2022.
Legacy Footwear, a 'B' category company, was listed in 2000. Its sponsor-directors hold 30 per cent shares, institutes 13.18 per cent and general investors 56.82 per cent, according to the latest data released at the end of February.