Popular Life’s share price soaring sans PSI

Share price of Popular Life Insurance Company Limited is soaring without any price sensitive information (PSI) as the company’s price surged further by 9.75 per cent Wednesday.

In the last one month, the insurer’s share price jumped more than 43 per cent or Tk 35.56 each to reach at Tk 118.20 on Wednesday on the Dhaka bourse. The company’s share price was Tk 82.60 a month ago on March 13.

In the last one year, its share price hovered between Tk 64 and Tk 118.20.

Following the recent abnormal price hike, the Dhaka Stock Exchange (DSE) served show-cause notice on the company.

However, the company informed the DSE on Thursday that there is no undisclosed price sensitive information for recent unusual price hike of its shares.

“Even after serving of show-cause notice, the prices of the company’s share price continued to rise, which may hit the investors” said an analyst, preferring anonymity.

A stockbroker said, investors attracted to the company’s shares expecting good dividend declaration ahead as the company declaring 40 per cent cash dividend each for the last two consecutive years – 2015 and 2016.

The company’s paid-up capital is Tk 604.28 million and authorised capital is Tk 5.0 billion, while the total number of securities is 60.42 million.

The sponsor-directors own 30.85 per cent stake in the company while the institutional investors own 27 per cent, foreign investors 0.21 per cent and the general public 41.94 per cent as on February 28, 2017, the DSE data shows.

The Popular Life Insurance Company was listed on the Dhaka bourse in 2005.

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