Loss-making and inactive firms dominate DSE top gainers

Dhaka's stock market closed higher today (18 November), extending its recent upward momentum as all major indices posted gains. 

Of the companies that participated in the day's trading, 320 saw their share prices rise, representing nearly 85% of all listed firms that traded. 

Significantly, the list of top gainers was dominated by companies that are closed, loss-making, or suffering long-term regulatory and financial weaknesses.

According to data from the Dhaka Stock Exchange (DSE), the highest gainer of the day was Peoples Leasing and Financial Services, a loss-making non-bank financial institution, whose share price surged 10.29% to Tk0.75. 

As the stock now trades below Tk1, it moves at the minimum tick size of 1 paisa. The company has never declared a cash dividend since its listing, and years of accumulated losses and repeated regulatory non-compliance have eroded its financial position. The sudden rise in its share price, therefore, has raised eyebrows among market observers.

The second-highest gainers were ML Dyeing, Pacific Denims, and New Line Clothings, each rising 10%. Both ML Dyeing and Pacific Denims continue to incur losses, while New Line Clothings is a closed company. 

Other financially weak firms also appeared prominently on the day's top gainer list. Loss-making Intech Limited advanced 9.91%, while closed firm Metro Spinning rose 9.88%. Prime Textile went up by 9.82%, First Finance by 9.76%, Bangladesh Building Systems by 9.72%, BBS Cables by 9.68%, and Fareast Islami Life Insurance by 9.66%.

Market analysts warn that sudden spikes in the share prices of weak, closed, or loss-making companies typically point to speculative activity or possible manipulation by influential syndicates. They advise investors to remain alert, noting that such firms carry high risk and have historically delivered poor returns for shareholders.