Low cap companies shine on BSEC move

Dhaka stocks fell on Sunday as investors turned to the low cap companies by releasing large-cap companies’ shares.

The trading was in the positive territory in the morning briefly but started to lose steam as the days went by.

The benchmark DSEX index shed 64 points or 0.92 per cent to settle at 6,920, hitting a high of 7,021 and a low of 6,912.

The Shariah-based DSES index fell 8 points or 0.54 per cent to 1,467 while the blue-chip comprising DS30 index was down 28 points 1.06 per cent to 2,604.

“Stock indices of the Dhaka bourse observed a downfall as investors trimmed their positions on large-cap equities since bargain hunters were seeking opportunities in small capitalized stocks,” said EBL Securities in a note.

Despite the decline in the major indices, stocks of low-cap companies saw an upsurge in prices after the securities regulator directed them to comply with the required TK 30 crore in paid-up capital within specified deadline, it said.

However, the market might be a bit sluggish ahead due to forthcoming IPO subscriptions while the maiden case of omicron infection in the country is adding worries on the trading bourse, it added.

On Saturday, Bangladesh Securities and Exchange Commission instructed 64 companies to raise their paid-up capital to Tk 30 crore within June next year—a move seen by analysts as a boon for junk companies and bane for good companies.

Among the top ten gainers, mostly came from the law cap sectors. Aramit was the top gainer surging 8.75 per cent, followed by Ambee Pharmaceuticals, Rahim Textile, ISN, Apex Foods, Sonali Paper and Libra Infusion.

The low-cap sectors including jute, printing, tannery and services and real estate sectors closed positive following the news. However, insurance faced the highest-selling pressure led by newly listed Sena Kalyan Insurance Company Limited that dropped almost 6 per cent, extending its losing streak for the third consecutive session. The company ended its monster on Wednesday after making its debut on November 7.

Among other major sectors, non-banking financial institutions, textile, bank, cement and pharmaceuticals suffered the most selling pressure.

Rally in BATBC, Linde Bangladesh, Unilever, Sonali Paper, Walton-Hi Tec and Robi offset some losses seen by the benchmark index.

The majority of the stocks closed in red territory. Out of the 376 issues traded, 99 advanced, 242 declined, and 35 remained unchanged. Turnover increased by 10 per cent to Tk 1,148 crore over the previous session. The banking sector dominated the turnover chart accounting for 19 per cent of the total turnover.

One Bank was the top loser falling 9.83 per cent, followed by Mithun Knitting, Phenix Finance, Sena Kalyan Insurance Company and Acme Pesticides.

The most traded stock included One Bank, Beximco, Saif Power Tec, Sonali Paper, Fortune Shoes, BATBC and First Security Bank.