DSEX climbs to highest level since early January

The Dhaka Stock Exchange (DSE) witnessed a surge today (17 February), with its benchmark index, DSEX, reaching its highest level since the first week of January. 

The index rose by 12.74 points or 0.24%, closing at 5,211, reflecting positive market sentiment. The blue-chip DS30 also gained 6 points to reach 1,928.

Market analysts attributed the upward trend to several factors, including improved corporate earnings, favourable macroeconomic indicators, and increased participation from both retail and institutional investors.

However, analysts warned that the rise of junk stocks is raising concerns about possible market manipulation, which could erode discipline and stability in the market.

Trading activity also saw a notable uptick, with the daily turnover rising to Tk443 crore, compared to Tk415 crore in the previous session.
The advance-decline ratio remained favourable, with 176 stocks gaining, 156 declining, and 64 remaining unchanged.

Key stocks driving the index's rise included Grameenphone, BRAC Bank, Islami Bank, and United Power, according to amarstocks.com.
Meanwhile, the Chittagong Stock Exchange (CSE) also ended in the green, with the Selective Categories Index (CSCX) gaining 44 points to reach 8,835 and the All-Share Price Index (CASPI) rising by 71 points to 14,576.

Shinepukur Ceramics tops gainers' list

Shinepukur Ceramics emerged as the top gainer on the DSE yesterday, with its share price soaring by 9.64% to close at Tk12.50. 

The company saw robust trading activity, with 37 lakh shares changing hands, amounting to a turnover of Tk4.53 crore.

The surge in Shinepukur Ceramics' stock comes against the backdrop of recent government announcements. On 28 January, Labour Adviser Brig Gen (retd) M Sakhawat Hossain revealed plans to sell Beximco's mortgaged shares in Shinepukur Ceramics and Beximco Pharmaceuticals. 

The proceeds from the sale will be used to settle outstanding dues for workers from laid-off factories, with the process expected to be completed by February.

In a related development, the Bangladesh Securities and Exchange Commission (BSEC) has ordered a special audit of Shinepukur Ceramics' financial reports for the past five years. The audit aims to ensure transparency and address any concerns regarding the company's financial practices, adding another layer of scrutiny to its operations.

S Alam Cold Rolled Steels shares jump 19% in two days

In a surprising turn of events, shares of S Alam Cold Rolled Steels surged by 9.34% yesterday, extending the rally for the second consecutive day, defying the company's ongoing operational and financial challenges.

The stock secured the third position on the top gainers' list on the DSE, despite the company's well-documented struggles to sustain its business operations.

During the trading session, the company's share price climbed to Tk11.70, up from Tk10.70 in the previous session. A total of 2.41 lakh shares were traded, generating a turnover of Tk0.28 crore.

In the last two trading sessions, its share price jumped over 19%, according to the DSE.

The sudden surge in share price comes as a surprise to market participants, given the company's recent disclosures about severe operational hurdles.

S Alam Cold Rolled Steels, the only listed entity under the controversial S Alam Group, has been under intense scrutiny due to its financial difficulties. The company recently disclosed that its bank accounts have been frozen and that it faces restrictions on opening LCs, which have severely impacted its operations. Additionally, its market capitalisation has plummeted by over 63% since July 2024, reflecting a sharp erosion of investor confidence.

Despite these challenges, the stock's unexpected rally has left investors and analysts speculating about the reasons behind the sudden uptick. Some market observers attribute the surge to speculative trading or short-term market dynamics.