Olympic Accessories stock soars 61% in 9 days

The share price of Olympic Accessories Limited jumped by 61% in nine days, although the company has been incurring losses for more than three years now.

The company's share price increased to Tk16 apiece on Wednesday at the Dhaka Stock Exchange (DSE), from Tk9.9 on 19 June. Before this unusual increase in price, the shares were stuck at the floor price for over six months.

Market insiders blamed the spreading of a rumour on social media – that a renowned garment accessories firm is going to take over Olympic Accessories – for the abnormal increase in the share price of this loss-making firm.

But Olympic Accessories, in response to a DSE query about the price hike, said that there is no undisclosed price sensitive information behind the recent price increase.

The company's Managing Director Golam Kibria told TBS, "We have heard about the rumour that is spreading among investors. But none of it is true and neither are our people involved in such wrongdoings."

"We have requested the DSE to find those responsible for the spreading of such misinformation," he added.

According to the DSE, the Olympic Accessories' board of directors could not fulfil the regulatory requirement of holding minimum 30% shares jointly.

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

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

Golam Kibria said, "We sold some shares before Covid. But the shareholding fell short of the regulatory requirement due to the error as percentage."

Olympic Accessories got listed in the stock exchange in 2015. It failed to pay any dividends to the shareholders owing to its losses.