Olympic Accessories stock sees 78% jump in 14 days

The share price of publicly listed Olympic Accessories Limited, which has been in losses for three years now, jumped 78% in just 14 trading sessions.

At the Dhaka Stock Exchange (DSE), the company's shares were trading at Tk11.5 apiece on 30 November, which increased to Tk20.5 on 20 December. On Sunday, the share price came down slightly and stood at Tk18.

This was not the first time the loss-making company's share price soared abnormally though. In June this year, the company's shares shot up 75% to Tk17.4 each. Before this unusual increase in price, its shares were stuck at the floor price for more than six months.

For the recent jump in the company's share price, market insiders blame spreading of the rumour that a renowned garment accessories firm is in talks to take over Olympic Accessories.

But the company, in response to a query letter from DSE, said that there was no undisclosed price sensitive information (PSI) that might have impacted the share price.

Managing Director Golam Kibria told TBS, "We have also observed the recent share price increase. But there is no undisclosed PSI to explain this."

"The ownership changing rumour is merely a rumour. We have no such plans."

Due to a drastic drop in purchase orders amid the global crisis, the company has been incurring losses. The management is trying to minimise losses as much as possible, he added.

According to the DSE, the board of directors of Olympic Accessories failed to fulfil the regulatory requirement of jointly holding minimum 30% shares.

This failure to hold a minimum of 30% shares is what gave birth to this rumour, said a top official at a brokerage firm.

Currently, Olympic Accessories' board holds 25.81% shares, which was 44.43% at the end of 2021-22 fiscal year, as per the DSE data.

In the July to September quarter of 2023, the company earned Tk37 lakh revenue, which was Tk1.26 crore in the same period of the previous year.

During the period, it made a loss of Tk1.42 crore, which was a loss of Tk1.30 crore a year ago.

Its per share loss stood at Tk0.08 and net asset value per share Tk10.97 at the end of September 2023.

Olympic Accessories was listed on the stock exchanges in 2015. It failed to pay any dividends to the shareholders owing to its losses.