Junk stocks still glitter at DSE
FE Report | Tuesday, 24 February 2009
Dhaka stocks closed mixed Monday with the bottom-rated Z category shares continuing to dominate the trading.
Trading at the Dhaka Stock Exchange (DSE) opened with a positive note. But it went into the negative territory on profit taking around mid-session, lasting half an hour. The issues of the insurance companies shined on the day.
The DSE General Index (DGEN) -- benchmark index-- closed at 2606.05 with a slight rise of 1.88 points. All Shares Price Index (DSI) ended at 2169.47 with a meagre rise of 1.47 points. DSE-20 comprising blue chips finished at 2128.87 with a drop of 6.25 points.
The day's trading was marked by the DSE authorities imposing trade halt on Rahima Food, Mona Food and Bionic Sea Food for market enquiry as the prices of the three Z category stocks were considered to have increased irrationally.
Among the day's top ten gainers, six came from Z-category issues and four from A-category issues.
Out of total 268 issues traded, 136 gained, 125 declined and seven remained unchanged.
"The turnover gradually increases which means that the investors who remained in sideline so far started to return to the market as the confidence was gaining day by day," said Mahmudul Bari, deputy general manager of the IDLC Finance Limited.
The day's total turnover came down to Tk 3.85 billion against the previous day's Tk 4.22 billion, the highest in the new year. The market capitalisation stood at Tk 1.00 trillion.
On unusual price rise of the low-performing shares a merchant banker, requesting not to be named, said, "Some investors have been trying to catch fish in the troubled water, making riskier the investment of the investors, particularly small ones."
"They are the investors who go for short-term gain, which is an unhealthy sign for the market," he added.
Shinepukur Ceramics Limited was the top turnover leader with shares worth Tk 261.51 million traded.
Other top turnover leaders were Titas Gas, S Alam Cold Rolled Steels Limited, Beximco, Beximco Pharma, BATBC, Summit Power, Jamuna Oil, Aftab Auto and Eastern Housing Limited (EHL).
Gainers of the Z-category issues were Tamijuddin Textile, Mona Food, Modern Industries, Continental Insurance, M Hossain Garments and Paramount Insurance.
The top losers were BD Luggage, Sajib Knitting, Ambee Pharma, Libra Infusion, Meghna Pet, Dulamia Cotton, Tulip Dairy, Mita Textile, Safko Spinning and Aziz Pipes.
Meanwhile, another report adds: The unusual price movement of z category shares has made the investors, particularly the retailers, vulnerable.
On Monday, six of the top 10 gainers were Z category shares. In recent times the price movements of the junk shares are more visible meaning investors are more exposed to risk.
Over 30 per cent of the listed companies have fallen to
Trading at the Dhaka Stock Exchange (DSE) opened with a positive note. But it went into the negative territory on profit taking around mid-session, lasting half an hour. The issues of the insurance companies shined on the day.
The DSE General Index (DGEN) -- benchmark index-- closed at 2606.05 with a slight rise of 1.88 points. All Shares Price Index (DSI) ended at 2169.47 with a meagre rise of 1.47 points. DSE-20 comprising blue chips finished at 2128.87 with a drop of 6.25 points.
The day's trading was marked by the DSE authorities imposing trade halt on Rahima Food, Mona Food and Bionic Sea Food for market enquiry as the prices of the three Z category stocks were considered to have increased irrationally.
Among the day's top ten gainers, six came from Z-category issues and four from A-category issues.
Out of total 268 issues traded, 136 gained, 125 declined and seven remained unchanged.
"The turnover gradually increases which means that the investors who remained in sideline so far started to return to the market as the confidence was gaining day by day," said Mahmudul Bari, deputy general manager of the IDLC Finance Limited.
The day's total turnover came down to Tk 3.85 billion against the previous day's Tk 4.22 billion, the highest in the new year. The market capitalisation stood at Tk 1.00 trillion.
On unusual price rise of the low-performing shares a merchant banker, requesting not to be named, said, "Some investors have been trying to catch fish in the troubled water, making riskier the investment of the investors, particularly small ones."
"They are the investors who go for short-term gain, which is an unhealthy sign for the market," he added.
Shinepukur Ceramics Limited was the top turnover leader with shares worth Tk 261.51 million traded.
Other top turnover leaders were Titas Gas, S Alam Cold Rolled Steels Limited, Beximco, Beximco Pharma, BATBC, Summit Power, Jamuna Oil, Aftab Auto and Eastern Housing Limited (EHL).
Gainers of the Z-category issues were Tamijuddin Textile, Mona Food, Modern Industries, Continental Insurance, M Hossain Garments and Paramount Insurance.
The top losers were BD Luggage, Sajib Knitting, Ambee Pharma, Libra Infusion, Meghna Pet, Dulamia Cotton, Tulip Dairy, Mita Textile, Safko Spinning and Aziz Pipes.
Meanwhile, another report adds: The unusual price movement of z category shares has made the investors, particularly the retailers, vulnerable.
On Monday, six of the top 10 gainers were Z category shares. In recent times the price movements of the junk shares are more visible meaning investors are more exposed to risk.
Over 30 per cent of the listed companies have fallen to