Junk stocks still rule gainers' chart
Junk stocks still dominate the chart of the top gainers of the premier bourse although the exchange took some tough measures against them weeks ago.
The Dhaka Stock Exchange (DSE) last month delisted two junk stocks – Rahima Food Corporation and Modern Dyeing & Screen Printing Ltd.
On August 5, it decided to review the business potential of 15 companies and even could delist them if there was no prospect of profitability.
Despite all this, junk stocks continue to witness an upward trend in the stock exchanges for the last couple of days, whereas the companies themselves say they are not in a position that could prompt the share prices to rise.
“Our company could not achieve any financial development because of a shortage of working capital,” Samata Leather Complex, one of the junk stocks, said through the DSE website.
“But we have observed a recent unusual trend in share prices although we took no decision that could have initiated an abnormal price rise,” it said.
Despite the statement, Samata's share prices soared 6.18 percent yesterday. In addition, many junk stocks made their way into the top 10 gainers list of the DSE.
Of them, Jute Spinners gained 9.91 percent, Zeal Bangla Sugar Mills advanced 8.01 percent, Savar Refractories was up 7.43 percent, Dulamia Cotton Mill rose 6.7 percent and Shurwid Industries added 6.69 percent.
The benchmark index of the bourse, DSEX, rose 34.44 points, or 0.61 percent, finishing the day at 5,619.41.
Turnover, one of the important indicators of the market, soared 14.98 percent to Tk 611.17 crore, with 17.13 crore shares and mutual fund units changing hands.
Of the traded issues, 137 advanced and 148 declined with 48 securities closing unchanged. United Power Generation dominated the turnover chart with 12.94 lakh shares worth Tk 44.29 crore traded, followed by National Housing Finance, IPDC, Brac Bank and LankaBangla Finance.
IPDC was the day's best performer with a 9.92 percent gain followed by Jute Spinners, RD Food, Nitol Insurance and Zeal Bangla.
Pragati Life Insurance was the worst loser, shedding 8.66 percent, followed by Imam Button, SEML IBBL Shariah Fund, Monno Ceramics and CAPM IBBL Mutual Fund.
Chittagong stocks also advanced with the bourse's benchmark index, CSCX, increasing 57.39 points, or 0.55 percent, to finish the day at 1,480.12. Losers beat gainers as 108 advanced and 114 declined, while 31 finished unchanged on the Chittagong Stock Exchange.