Big winners now top losing stocks
The unbelievable rallies in some stocks like Emerald Oil and Rupali Life Insurance Company observed over weeks not only stopped this week but also became the top losers in the Dhaka Stock Exchange (DSE).
Hitting the bottom circuits – the lowest allowable price for a session – and having no interested buyers for consecutive days came as a nightmare to the investors who chased the insanely rallied stocks at the top.
For instance, Emerald Oil shares that soared to TK185 from 30 in less than three months hit Tk147 on Wednesday thanks to some buyers who pulled it up to Tk156 during the closing bell.
The scam-hit rice bran oil producer, abandoned by its absconded sponsors, came back in production under a regulatory effort as a new Bangladeshi- Japanese entrepreneur took over the helm. However, Basic Bank was reportedly preparing for the company's factory auction as its defaulted loans stood at Tk140 crore, defying the possibility and speculation of negotiations.
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Rupali Life shares, which soared to Tk252 from Tk90 in two months, fell by Tk98 in 10 trading days, often lacking buyers at the bottom circuit.
Also, some of the recently rallied weak fundamental stocks, including Aziz Pipes, Meghna PET, Khan Brothers PP Woven Bag, Legacy Footwear, Imam Button, Samata Leather Complex, and Miracle Industries, occupied the top losing spots at the DSE. Thanks to the regulatory moves for investigating suspected violations of securities law in the trading of a few junk stocks,
The Dhaka bourse's broad-based index, DSEX, however, increased by 0.23% to 6,366 on Wednesday following two consecutive down days amid political unrest.
Non-life insurance stocks saw higher demand on Wednesday following the government's nod for introducing bancassurance – selling insurance products at bank branches – as experts believe the move would help increase insurance penetration in the country.
Travel and leisure, general insurance, life insurance, textile, engineering, ceramic, mutual funds, and banking were the winning sectors on Wednesday, while jute, tannery, cement, IT, paper, services, and miscellaneous were the losing sectors.
Of the DSE scrips, 116 increased, and 65 declined.
As volatility unnerved most of the investors, turnover in the DSE declined by 16% to Tk877 crore.
Turnover in the port city bourse, Chittagong Stock Exchange, declined by 32% to Tk10.5 crore.
