KPCL stock doubles in 16 days on rumour - Share market analysis of dhaka stock exchange, Bangladesh

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01 October, 2018 10:10 AM Source: The Daily Star Bangladesh

The shares of Khulna Power Company Ltd dominated the Dhaka bourse in September riding on a rumour that KPCL would acquire another power producer.

In a gap of 16 trading days, the price of the company's share rose 95.71 percent to Tk 137.90 on September 19, before falling to Tk 118.60 yesterday.

Shares of the power producer worth Tk 1,269.19 crore changed hands throughout the whole September, which is nearly four times its paid-up capital.

Retail investors hold only 17.92 percent shares of KPCL which was valued at Tk 712 crore as per yesterday's market value.

On September 4, the company informed through the DSE website that there was no reason for the unusual price hike of its stocks. In September, the figure of the DSE's total turnover stood at Tk 14,798 crore and KPCL accounted for 8.57 percent of it, data from the bourse showed.

A senior official of KPCL preferring anonymity ruled out the rumour. “It's totally baseless. We know nothing about the plan for acquisition.”

KPCL is a good performing company and has not become risky yet, market analysts said. “But the sudden surge in turnover has raised eyebrows,” they opined.

KPCL's earnings per share were Tk 5.07 in 2017 and it declared 55 percent dividend in the year.

The company is the first independent power producer in the country. It was incorporated in October 1997 as a private limited company and converted into a public limited one in July 2009, according to the company's website.

It has two subsidiaries: Khulna Power Company Unit II Ltd and Khanjahan Ali Power Company Ltd.

Meanwhile, the DSE rose yesterday.

The DSEX, the benchmark index of the premier bourse, added 26.06 points, or 0.48 percent, to finish the day at 5,368.95. The turnover, however, declined 1.7 percent to Tk 516.42 crore, with 11.08 crore shares and mutual fund units changing hands. Of the traded issues, 187 advanced, 95 declined and 54 closed unchanged.

United Power Generation topped the turnover chart with its 13.62 lakh shares worth Tk 44.93 crore changing hands, followed by Khulna Power, Ifad Autos, Monno Ceramics and Active Fine. Phoenix Insurance was the day's best performer with a 10 percent gain while Intech Online was the worst loser, giving up 9.47 percent.

Chittagong stocks also soared with the bourse's benchmark index, CSCX, increasing 25.53 points, or 0.25 percent, to finish the day at 9,984.23. 

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