Tk 95cr AOL becomes Tk 522cr company in 2 weeks!

It seems that the Associated Oxygen Limited (AOL) has got a magic lamp that makes the company six times bigger than it was in just two weeks ago.

AOL, which is a producer and supplier of industrial gases, both in liquid and gaseous forms, made its debut trading at Tk 10 a share on October 25 that reached Tk 60.5 on Wednesday (Nov 11).

Market analysts said that there is no reason that can take the company’s share price more than six times higher in a short span of time.

The Chattogram-based company reported earnings per share (EPS) of Tk 1.87 for the year ended on June 30, 2020 as against Tk. 1.51 a year ago. Net asset value (NAV) per share of AOL stood at Tk 19.25, down from Tk 17.37 a year earlier.

“It’s a gambling and general investors should be aware of it,” said a market analyst wishing not to be named.

Sponsor and directors of the company hold 30.66 percent stakes, while institutional investors own 28.70 percent, and general shareholders have 40.65 percent as of October 22, 2020, according to Dhaka Stock exchange (DSE).

Meanwhile, DSEX, the benchmark index of DSE fell nearly 16 points to finish the day at 4883. Mutual funds continue to rally for over a week after insurance stocks started declining in recent days.

A total of Tk 975 crore worth of shares traded hands on DSE, of which one-fourth was mutual funds.