Beximco's shares soar upon rumour

Beximco Limited's share price soared nearly 40 percent in 10 working days upon rumours that the business giant has struck up a partnership with the Bangabandhu-1 satellite that is scheduled for launch on May 4.

On March 28, each Beximco share traded for Tk 22.10, which rose to Tk 31 on April 11, according to the Dhaka Stock Exchange. For the last seven days, Beximco topped the turnover chart.

Between April 1 and April 15, 12.28 crore shares of Beximco changed hands on the DSE, generating a turnover of Tk 374.87 crore.

On April 8, the company denied the existence of any price-sensitive information that has not been disclosed yet.

Contacted by The Daily Star, Beximco reiterated the same, adding that there is no relation between the company and the satellite, which is fully owned by the government.

The Daily Star also contacted a host of brokerage houses, all of whom mentioned the unsubstantiated rumour of the tie-up with the Bangabandhu-1 behind the unusual price hike.

A vested quarter had spread the rumour among small investors that Beximco will be hugely benefitted from sending the satellite to orbit.

Beximco's shares traded at Tk 29 each on the Dhaka bourse yesterday; a total of 1.31 crore shares worth Tk 39.30 crore changed hands.

Beximco's earnings per share for the October-December period of 2017 stood at Tk 0.35. As of December 31, 2017, its net asset value per share was Tk 71.67.

Beximco Group's Vice-chairman Salman F Rahman is the private sector development affairs adviser to Awami League chief Sheikh Hasina, also the prime minister.