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The Financial Express

Share prices of Rahima Food, Beacon Pharma keep soaring sans PSI

| Updated: March 20, 2021 10:11:17


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The share prices of two listed firms - Rahima Food Corporation and Beacon Pharmaceuticals - are soaring without any undisclosed price sensitive information (PSI).

Within two weeks, share price of Rahima Food jumped more than 52 per cent or Tk 91.4 each to close at Tk 266.80 on Tuesday. Its share price was Tk 175.4 two weeks earlier on March 3.

The company's share price also hit more than two years' high of Tk 274 each on Tuesday before closing at Tk 266.8 despite the company's operation remained suspended from 2013.

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

The company, however, in a knee-jerk response to the DSE on Tuesday said that there was no undisclosed price sensitive information 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, advancing 5.12 per cent further on Tuesday, the DSE data showed. It was the day's fifth highest gainer.

Rahima Food Corporation resumed its share trading on December 29, 2020 on the DSE's main board after 30 months break.

Earlier on 19 July, 2018, the DSE de-listed the company from its trading platform while the CSE suspended trading then as the company's share price soared abnormally despite remaining out of operation for long time.

In a recent DSE query, the company informed that its operation suspended from 2013 for diversification to other manufacturing process and establishment a new project for production and marketing of Coconut oil is in progress. The company is expected to complete the new project by May 2021 and start commercial operation by June, 2021.

Rahima Food's paid-up capital is Tk 200 million and authorised capital is Tk 500 million, while the total number of securities is 20 million.

The sponsor-directors own 37.38 per cent stake in the company while the institutional investors own 20.67 per cent, foreign investors 4.99 per cent and the general public 36.96 per cent as on February 28, 2021, the DSE data shows.

On the hand, Beacon Pharmaceuticals share price also soared 42 per cent within a month to close at Tk 131.40 on Tuesday despite no undisclosed price sensitive information.

The drug maker's share price was Tk 94.90 a month earlier on February 17.

Following the 'abnormal' price hike, the DSE also served show-cause notice on the company. However, the company informed the DSE on Tuesday that there was no undisclosed PSI for recent unusual price hike.

Beacon Pharma, which was listed on the Dhaka bourse in 2010, disbursed 6.0 per cent cash dividend for the year ended on June 30, 2020.

The company's paid-up capital is Tk 2.31 billion and authorised capital is Tk 3.0 billion, while the total number of securities is 231 million.

The sponsor-directors own 30 per cent stake in the company while the institutional investors own 35.34 per cent, and the general public 34.66 per cent as on February 28, 2021, the DSE data shows.

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

They advised the investors to carefully invest in stocks and should analyse the fundamentals of the companies beforehand.

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