Prices of junk stocks continue to rise on the Dhaka Stock Exchange whereas prices of quality stocks have fallen significantly.
The shares of the worst-performing companies were the top gainers on the premier bourse yesterday. On the other hand, the stocks of the well-performing companies declined drastically.
The top five gainers on the DSE were Bashundhara Paper Mills, an N category share; C & A Textiles, a Z category share; Savar Refractories, a Z category share; Aziz Pipes, a B category share; and Jute Spinners, a Z category share.
The shares of Bashundhara Paper Mills soared 63.5 percent. Since it made the debut yesterday, it faced no cap that prevents a stock from rising or falling more than 10 percent in a single day. The shares of the remaining four companies rose by almost 10 percent.
In fact, Z category shares have been rising in the same pace in the last few days against the fall of the blue-chip shares. “Some are gambling with the shares of the worst-performing companies,” said Abu Ahmed, a former chairman of the economics department at the University of Dhaka.
Yesterday, Square Pharmaceuticals and Grameenphone, both having blue-chip shares, saw huge decline in their share prices. Banking stocks also fell despite an increase in their operating profit in the first half of 2018.
The benchmark index of the DSE dropped drastically in the last two days mostly led by declines in the shares of the large-cap companies.
The DSEX declined 83.04 points, or 1.53 percent, finishing the day at 5,322.41.
The premier bourse observed a notable price correction amid sales pressure induced by profit-booking, said EBL Securities. It said investors remained watchful ahead of upcoming earnings and corporate declarations from listed companies.
Turnover, another important indicator of the market, also declined 2 percent to Tk 784.75 crore, with 16.41 crore shares and mutual fund units changing hands.
Of the traded issues, 106 advanced and 206 declined with 30 securities closing unchanged.
Bashundhara Paper Mills dominated the turnover chart with 63.08 lakh shares worth Tk 88.65 crore being traded, followed by Ratanpur Steel Re-Rolling Mills, Monno Ceramic Industries, Beximco, and United Power Generation.
Chittagong stocks also fell with the bourse's benchmark index, CSCX, shedding 101.49 points, or 1.10 percent, to finish at 9,907.85.
Losers beat gainers as 86 advanced and 124 declined, while 21 finished unchanged on Chittagong Stock Exchange.
The port city bourse traded 87.83 lakh shares and mutual fund units worth Tk 42.60 crore.