Prices of Eastern Cables, National Life Ins soar

FE Report | Published: June 11, 2019 10:45:09 | Updated: June 12, 2019 16:02:40

The share prices of Eastern Cables and National Life Insurance Company rose up to 40 per cent in recent time though there was no undisclosed price sensitive information.

Eastern Cables incurred loss for January-March, 2019. Nevertheless, the company saw a price hike of around 36 per cent in recent time.

According to information of Dhaka Stock Exchange (DSE), the prices of Eastern Cables and National Life Insurance Company soared between 36.45 per cent and 40 per cent in nine to 14 sessions executed on the prime bourse of the country.

Market insiders smelt a rat of manipulation of such unusual behaviour of the prices.

"Investors remain shaky for months and such unhealthy trends only help to exacerbate the situation," a market observer said.

Asked, DSE director Md. Rakibur Rahman said anyone can purchase shares without violating the existing rules.

"The share purchase activities cannot be intervened unless someone violates the rules. Nevertheless, the DSE can seek the companies' reply regarding any price sensitive information behind the price hikes," Rahman said.

The chief executive officer (CEO) of a brokerage firm said on anonymity that the amount of floating shares of National Insurance Company is very small.

"It may be a reason behind the price hike of National Insurance Company. Anyone can purchase shares in line with the existing rules," the CEO of the brokerage company in question said.

The share price of Eastern Cables soared 36.45 per cent or Tk 104.60 in 14 sessions executed during May 12 to June 9.

On Monday, the company's share price, however, declined marginally and closed at Tk 374.50 each with a loss of 2.43 per cent or Tk 9.50.

In response to a DSE query dated April 08, 2019, Eastern Cables in a knee-jerk response has informed that there is no undisclosed price sensitive information of the company for recent unusual price hike and increase in volume of shares.

According to un-audited quarterly statement, the company has incurred a loss of Tk 0.53 per share for January-March 2019 as against the EPS of Tk 0.41 for January-March 2018.

The company also incurred a loss of Tk 3.26 for July 2018-March 2019 as against the EPS of Tk 0.46 for July 2017-March 2018.

Eastern Cables, presently an 'A' category company, was listed on DSE in 1986.

The company's sponsor-directors hold 17.77 per cent shares, the government 51 per cent, institutions 17.95 per cent and general public 13.28 per cent as of April 30, 2019.

The share price of National Life Insurance Company closed at Tk 244.40 each on Monday with a marginal rise of 0.50 per cent or Tk 1.20.

The company's share price soared 40 per cent or Tk 69.80 in nine trading sessions executed during May 21 to June 10, 2019.

National Life Insurance Company, presently an 'A' category company, was listed with the stock exchanges in 1995.

The company's sponsor-directors hold 82.65 per cent shares, institutions 10.92 per cent and general public 6.43 per cent as of April 30, 2019.


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