Curious case of BDCOM share price jump

The unusual rise in the share of BDCOM Online Limited has made many market analysts puzzled to justify the price that rose 84 percent in just 10 working days.

According to DSE data, the share price of BDCOM soared to Tk 59 on Sunday, up from Tk 36.30 on September 15.

Data shows demand has led to this price hike in recent days. Last week, Tk 162.32 crore worth of shares were traded and the average transaction per working day was Tk 32.46 crore, which was much higher than many large and blue-chip companies.

DSE also made a query asking the company to explain whether there is any undisclosed price-sensitive information behind this meteoric rise in its share price.

Given the notice sent by DSE on September 19, BDCOM authorities said that they do not have any undisclosed price-sensitive information related to the recent abnormal price and trading of the shares.

As there was no price-sensitive information provided by the company, DSE has recently published a warning message for the investors. But nothing seemed to work as BD Com’s share price continued to rise.

The company was listed on the stock market in 2002. It last paid 5 percent cash and 5 percent stock dividends to investors for the year ending June 30, 2021.

Earlier in 2020, the company paid a dividend at the same rate. However, in 2019, the company paid 6 percent cash and 6 percent stock dividends.

The number of shares of this company is over 5.70 crore and the paid-up capital is Tk 57.8 crore. Some 30 percent of this is in the hands of the sponsors and directors.

Out of the remaining shares, 64.40 percent are held by common investors, and institutional investors have a 5.60 percent stake.