Loading...
The Financial Express

Orion Infusion stock price jumps to record high sans PSI

Sonali Aansh price soars 62pc in a month


| Updated: September 21, 2022 18:32:35


Orion Infusion stock price jumps to record high sans PSI

Orion Infusion has been witnessing an 'abnormal' price surge and increased volume of share transactions, as its price closed at a record high of Tk 508.20 each on the Dhaka Stock Exchange (DSE) on Sunday.

Share prices of the company jumped 248 per cent or Tk 362 each in a month although there is no undisclosed price sensitive information (PSI).

The company's share price soared by more than six times or Tk 427 each in the past three months since June 19 when it was traded at Tk 80.70 each, according to the DSE data.

The 'abnormal' price hike prompted the DSE to serve show-cause notices on the company several times last month to know whether there was any price sensitive information. But the company had repeatedly informed investors through the DSE website that it had no undisclosed price sensitive information.

Even after being served show-cause notices, the company's share price continued to rise and gained 8.73 per cent further on Sunday, becoming the day's ninth highest gainer.

Market analysts suspect that price manipulation might have been the reason behind such an 'abnormal price' surge.

The company also made its way into the top ten turnover chart as the fourth highest turnover leader.

Orion Infusion's share price is rising too fast and the regulator should investigate whether there are any wrongdoings by manipulators, said a merchant banker, seeking anonymity.

The stock price of the company is on the rise, but transaction and price movement of the company's shares do not match its fundamentals, he said.

Orion Infusion has reported its earnings per share (EPS) of Tk 1.43 for July 2021-March 2022 as against Tk 1.12 for July 2020-March 2021.

The merchant banker said the investors are chasing its stock without conducting any proper analysis, as they see continuous rise in values.

The surveillance team of the regulator was keeping an eye on its trading every day, said an official of Bangladesh Securities and Exchange Commission (BSEC).

He said general investors need to be careful about their own investments.

Listed in 1994, Orion Infusion disbursed 10 per cent cash dividend in 2021. In 2020, it also provided a 10 per cent cash dividend.

Meanwhile, Sonali Aansh Industries' share price also jumped 62 per cent in a month until Thursday despite having no undisclosed price sensitive information.

The company's share price was Tk 444.80 each a month earlier on August 16 on the prime bourse, according to DSE data.

The company's share price, however, fell 4.12 per cent to close at Tk 691.50 on Sunday.

The recent price surge prompted the prime bourse to serve show-cause notice on the company last week to know whether there was any price sensitive information for the recent unusual price hike.

The company, however, in a knee-jerk response to the DSE, said there is no undisclosed price sensitive information.

Market insiders pointed to price manipulation, saying the company's small volume of shares is behind the artificial crisis.

"The company's paid-up capital is very low, making it an easy target for price manipulation," said a stockbroker.

Its paid-up capital stands at Tk 27.12 million while the total number of securities is 2.71 million.

"The influential investors by disseminating rumours try to manipulate the prices of shares of many companies to make a quick profit," he said.

The company has reported its earnings per share (EPS) of Tk 3.05 for July 2021-March 2022 as against Tk 0.75 for July 2020-March 2021.

[email protected]

Share if you like