Low-performing stocks climb on rumours

Low-performing companies, known as B category stocks, dominated the gainers’ chart on the Dhaka Stock Exchange (DSE) yesterday riding on the rumours that big investors are buying them in large volume.

The DSEX, the benchmark index of the premier bourse in Bangladesh, fell 4 points, or 0.06 per cent, to close the day at 6,213.

The DS30, the blue-chip index, dropped 0.09 per cent to 2,207 and the DSES, the shariah-compliant index, declined 0.30 per cent to 1,348.

All of the top five gainers’ belonged to the B category. Samata Leather Complex, Bangladesh Autocars, Legacy Footwear, Union Capital and Standard Ceramic Industries all rose more than 8 per cent.

When a company fails to provide at least a 10 per cent dividend to its shareholders, it is downgraded to the B category from the A category.

“Some people spread rumours that some big investors are taking positions in these companies so their prices would rise,” said a stockbroker.

Of the traded securities on the DSE, 54 advanced, 69 declined and 207 did not show any price movement.

Turnover, an important indicator of the market, rose 8 per cent to Tk 575 crore.

The stocks on the DSE slipped into the red after a three-day break as risk-averse investors went for a quick profit-booking by selling off stocks and waited for new opportunities, said International Leasing Securities Ltd in its daily market review.

“The investors are cautiously reshuffling their portfolios based on upcoming earnings expectation of the December-end stocks.”

Of the sectors, life insurance rose 0.7 per cent and travel was up 0.2 per cent. On the other hand, the paper sector was down 1.9 per cent, the jute sector declined 1.8 per cent, and the service sector shed 1.4 per cent.

Investors’ attention was mostly centred on the IT sector, which accounted for 20 per cent of the day’s turnover. The food sector constituted 10.5 per cent of the turnover.

Oimex Electrode topped the list of losers, shedding more than 4 per cent. BDCOM Online and JMI Hospital Requisite Manufacturing suffered substantial losses as well.

Bangladesh Shipping Corporation was the most-traded stock on the day with its shares worth Tk 42 crore transacted. Unique Hotel & Resorts, Genex Infosys, Eastern Housing, and Aamra Networks also saw significant turnover.

The stocks on the Chittagong Stock Exchange also fell.

The Caspi, the all-share price index of the bourse in the port city, was down one point to close at 18,316.

Of the issues, 38 rose, 35 retreated and 61 did not see any price movement. Turnover increased 68 per cent to
Tk 11.84 crore.

Source: The Daily Star
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