Dhaka Stock Exchange sent a letter to the company asking the reason for this sudden boom in its share price
The leading cement producer LafargeHolcim has reported strong earnings for the July-September quarter.
Meanwhile, the concerned Dhaka Stock Exchange (DSE) has sent a letter to the company asking the reason for this sudden boom in its share price.
In response to the letter, LafargeHolcim said that there was no undisclosed price-sensitive reason behind the upward trend in the stock market.
Asked about this, the Senior Manager of Communications of LafargeHolcim Bangladesh Ltd said that DSE wanted to know the reason for the increase in the share price.
“We replied that there has been no undisclosed material decision or information relating to the company’s operation or profitability that might have impacted on the trade of the shares of the company,” he added.
Meanwhile, small-scale investors told Dhaka Tribune that they have heard market jitters about the anticipation of a stake-sale deal between existing sponsor shareholders and potential buyers.
LafargeHolcim made the financials available on its website after holding a board meeting on Thursday.
The company registered a sales revenue of Tk460 crore during the quarter that grew 26% in comparison to the Tk365 crore in the same period last year.
Aggregates, the newly introduced product of the company, contributed Tk30 crore over the quarter while the remaining growth came from selling grey cement and cement clinker.
According to the company financials, its earnings per share stood at Tk2.66 for the first nine months of the year, which was Tk1.29 during the same period last year.
In line with business growth, the company stocks have flourished in the stock market, posting approximately a 100% price hike since the beginning of this year.
The stock closed at Tk95.9 per share on Thursday at the Dhaka bourse.
The sponsors and directors of the company currently hold 64.88% of its shares, while institutional investors hold 17.84%, foreign investors 0.74% and general investors hold 16.74%.
LafargeHolcim was listed with the bourses back in 2003.