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Junk stocks dominate top gainers' list

ICB Islamic Bank leads the chart

FE REPORT | July 19, 2022 00:00:00

Junk stocks kept gaining for the second straight session on Monday and featured in the top gainers' chart despite the heavyweight stocks kept losing.

Only 12 issues closed green out of 382 issued traded on Monday while four junk stocks featured on the day's top gainers' list.

Junk stocks have also frequently featured on the top gainers' list in the past few weeks.

A company's stocks are termed as junk when its commercial production is shut for six months in a row, fail to arrange annual general meetings on time or fail to provide dividends to shareholders.

Four top gainers, out of 10, were from 'Z' category in the bearish market.

Among the junk stocks, ICB Islamic Bank posted the highest gain of 9.09 per cent to close at Tk 6.0 each.

The ICB Islamic Bank's share price also rose 10 per cent on Sunday after the bank announced that it managed to make a profit for the first time in its history.

In the April to June quarter of 2022, the bank's earnings per share (EPS) stood at Tk 0.15, as against loss of Tk 0.17 per share for April-June 2021.

The scam-hit Bangladesh Industrial Finance Company was the second highest gainer on Monday, soaring 8.96 per cent to close at Tk 7.30 each.

Mithun Knitting & Dyeing clinched the third spot on the gainers' list; rising 3.98 per cent further to close at Tk 18.30. Mithun Knitting was the top gainer on Sunday, surging by 10 per cent.

Savar Refractories share price also jumped 2.71 per cent despite the company is incurring losses and not giving any dividends for many years. Its share price closed at Tk 246.20 on Monday.

In the last two months its share price rose 36 per cent or Tk 65.30 each.

Market insiders blamed price manipulation due to a small volume of shares behind the artificial crisis.

"The company's paid-up capital is very low, making it a target for gamblers seeking to manipulate trading," said a stockbroker.

Its paid-up capital stands at Tk 13.93 million while the total number of securities is 1.39 million.

Orion Infusions was the fifth highest gainer, rising 2.14 per cent to close at Tk 100.20 each.

Libra Infusions stock rose 1.69 per cent to close at Tk 1,002, Bank Asia's share gained 0.97 per cent to close at Tk 20.70, Standard Ceramic's stock gained 0.75 per cent to close at Tk 161.60, HR Textile rose 0.69 per cent to close at Tk 101.60 and Trust Bank's share rose 0.60 per cent to close at Tk 33.50 each on Monday.

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