Published at: The Financial Express, March 02, 2019
Bangladesh Submarine Cable Company Ltd (BSCCL) dominated the prime bourse’s turnover chart while ten traded companies grabbed 35 per cent transaction last week.
Market analysts said investors continued to show their buying appetite on Bangladesh Submarine Cable shares as the company’s earnings rose sharply in July-December, 2018.
The share price of the state-run company almost doubled within three months to close at Tk 174.20 on Wednesday, the last trading day of the week. Its share price was Tk 86.70 each on November 29, 2018.
The Dhaka Stock Exchange (DSE) served show-cause notice on the company on February 25.
Even after being served show-cause notice, the price of the company has not stopped rising and rose further by 3.57 per cent last week.
The company, however, informed that there was no undisclosed price sensitive information for recent unusual price hike of its shares.
The company’s earnings per share (EPS) saw ‘abnormal’ rise to Tk 0.96 in October-December, 2018, from Tk 0.04 for the same quarter of the previous year.
In six months for July-December, 2018, its EPS also soared to Tk 1.43 as against Tk 0.06 in July-December, 2017.
“…..earnings per share rose due to increase in revenue and no significant additional expenditure against the increased revenue,” said the company in a statement.
The company noted that the net operating cash flow per share also increased due to emphasised of the company on revenue collection and taking some steps for realisation which led to significant increment of cash received from clients and there was no cash flow due to extraordinary transaction during this period.
According to statistics from the DSE, about 7.75 million shares of BSCCL were traded, generating a turnover of Tk 1.34 billion, which was 5.04 per cent of the DSE’s total turnover.
The BSCCL, which was listed on the Dhaka bourse in 2012, disbursed only 5.0 per cent cash dividend for the year ended on June 30, 2018. Accordingly, the company is now trading in “B” category.
The company’s paid-up capital is Tk 1.64 billion and authorised capital is Tk 10 billion, while the total number of securities is 164.91 million.
The government owns 73.84 per cent stake in the company while institutional investors own 14.96 per cent, foreign investors 3.04 per cent and the general public held 8.16 per cent as on January 31, 2019, the DSE data shows.
United Power followed next, with shares worth Tk 1.27 billion changing hands. The company’s share closed at Tk 407.70 on Wednesday, the last session of the week, losing 2.72 per cent over the week before.
Monno Ceramic clinched the third spot, with shares worth Tk 1.21 billion changing hands. The company’s share rose 13.97 per cent over the previous week.
Square Pharmaceuticals emerged fourth with shares worth Tk 1.12 billion changing hands. The second largest market cap company’s share closed at Tk 273.80, gaining 1.44 per cent.
Fortune Shoes notched the fifth spot, with shares worth Tk 1.10 billion changing hands. The shoe maker’s share price advanced 4.35 per cent to close at Tk 29.40 each on Wednesday.
Khulna Power Company was also included in the top 10 turnover chart with shares worth Tk 1.10 billion changing hands, followed by Legacy Footwear (Tk 644 million), Grameenphone (Tk 591 million), Brac Bank (Tk 547 million) and Sonar Bangla Insurance (Tk 502 million).