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Two companies' prices keep rising sans PSI

| Updated: March 30, 2022 10:36:41

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Share prices of two companies -Gemini Sea Food and Oimex Electrode-- are rising without any price sensitive information (PSI).

Within 12 trading days, the stock price of Gemini Sea Food jumped 36 per cent or Tk 130 each to close at Tk 490.40 on Sunday in the falling market.

The company's share price was Tk 360 each 12 trading days ago. Its shares traded between Tk 136.6 and Tk 497.6 in the last year.

The share price of the shrimp exporter also more than doubled in the last six months riding on speculation and 'irrational hype' among investors.

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

The company, however, informed the DSE that there is no undisclosed price sensitive information for the recent unusual price hike.

Even after being served show-cause notice, the company's share price has not stopped rising and rose further by 1.74 per cent on Sunday.

The company declared no dividend for the year ended on June 30, 2020. However, the company disbursed a 5.0 per cent cash dividend (other than sponsors and directors) for 2021.

Meanwhile, the company returned to the profit in July-December, 2021, after incurring losses in the previous year.

The company has reported earnings per share (EPS) of Tk 5.12 for July-December 2021 as against the loss of Tk 7.92 per share for July-December 2020.

Gemini Sea Food is the pioneer in exporting certified organic shrimp from Bangladesh to EU retailers in the year 2008. However, the shrimp business had suffered severe disruptions due to the Covid-19 pandemic in 2020.

Oimex Electrode: Share price of Oimex Electrode is also rising 'abnormally' in recent times despite the company insured losses for July-December 2021.

The company's share price rose about 25 per cent within the 12 trading days and closed at Tk 20.70 on Sunday. Its shares traded between Tk 16.10 and Tk 31 in the last one year.

Oimex Electrode declared 'no' dividend for the year ended on June 30, 2021.

The company has reported loss of Tk 0.77 per share for July-December 2021 as against profit of Tk 0.08 per share for July-December 2020.

In spite of poor performance, its unusual price movement prompted the DSE to serve notice on the company whether there was any price sensitive information for unusual price hike.

However, its share price fell 1.90 per cent on Sunday after the DSE served show-cause notice on the company on Thursday.

Market insiders said some companies with low performance records also made their way into the top gainers' list of the DSE frequently, riding on a rumour that the investors are putting money in the securities.

"The influential investors by disseminating rumours are trying to manipulate the prices of shares of many companies to make quick-profit," said an analyst at a leading brokerage firm.

He said the investors are chasing these stocks without conducting any proper analysis, as they see continuous rise in values.

"If these stocks face corrections, general investors will be the ultimate losers, which will dent their confidence," he said.

He noted that investors should be careful about the unusual price hike of the low-profile companies and they do not pay any heed to rumours at the time of trading shares.

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