Stocks keep dropping after Eid, junk stocks gain

Dhaka Stock Exchange (DSE) fall extended deeper in the second straight session on Wednesday due to the prolonged pessimism but junk stocks topped the gainers chart.

According to the latest directive from the regulator, BSEC, companies with paid-up capital below Tk 30 crore need to upgrade by next December. Otherwise, they will be removed from the main market.

After such decision, investors were interested in companies with paid-up capital below Tk 30 crore in the capital market on Wednesday.

Their idea is that companies will have to raise paid-up capital by buying shares from the market by December. This will further increase the share prices of these companies.

On the day, the junk stock Meghna Condensed Milk was the top gainer, posting a 9.55 per cent gain while Advent Pharma was the day’s worst loser, losing 2.0 per cent.

Dhaka stocks continued their downward momentum after Eid vacation as investors sold their holdings against the backdrop of escalating macroeconomic concerns, said the EBL securities.

Meanwhile, DSEX, declined by 30.7 points and settled at 6,325 points against 6,355 points at the end of the day. The market outlook is still bleak, in the absence of any major trigger.

Investors were cautious due to the prolonged pessimism on the bourse, as their concerns spiraled by the news that foreign currency reserves had dropped to a two-year low of under $40 billion, it’s said.

As a result of the sell pressure, bourses observed a slight rise in participation, while turnover has increased by 3.4 per cent and stood at Tk 702 crore as against Tk 680 crore in the previous session.

Two other indices ended lower. The DS30 Index dropped 11.18 points to close at 2,273 point and the DSES Index shed 7.91 points to finish at 1,378 point.

On the sectoral front, Textile (14.7 per cent) issues exerted the highest turnover followed by Engineering (10.0 per cent) and Financial Institute (9.7 per cent) stocks.

Most of the sectors displayed dismal returns, out of which IT (-1.6 per cent), Ceramic (-1.4 per cent), and Textile (-1.3 per cent) exerted the most negative returns while Jute (0.5 per cent), Life Insurance (0.5 per cent), and Miscellaneous (0.3 per cent) generated some positive returns on the bourse on Wednesday.

Out of the 386 issues traded, 77 advanced, 259 declined, and 50 remained unchanged.

Fortune Shoes was the most-traded stock with shares worth Tk 49 crore changing hands, closely followed by Beximco, IPDC Finance, Titas Gas and Delta Life Insurance.

The Chittagong Stock Exchange (CSE) also closed lower with the CSE All Share Price Index-CASPI losing 72 points to settle at 18,615 point and the Selective Categories Index – CSCX shedding 43 points to close at 11,155 point.

Of the issues traded, 177 declined, 61 advanced and 32 issues remained unchanged on the CSE.

The port city’s bourse traded 81 lac shares and mutual fund units with a turnover value worth Tk 22 crore.