Stocks rise despite weak large-cap shares

Stocks saw an uptick today, driven by gains in the insurance sector and weak, loss-making shares, despite a significant drop in large-cap stocks, raising concerns of potential market manipulation.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose by 24 points to 5,829, marking its third consecutive day of gains. The blue-chip DS30 index also increased by 4 points, closing at 2,128.

However, turnover at the DSE fell by 3% to Tk933 crore, reflecting reduced investor participation. Out of the traded scrips, 255 advanced, 100 declined, and 35 remained unchanged.

The Chittagong Stock Exchange (CSE) also saw gains, with its general index CSCX climbing by 61 points to 10,016 and the all-share index CASPI rising by 103 points to 16,623.

EBL Securities noted in its daily market review that the week began positively for the capital market, with the benchmark index continuing its upward trend due to renewed investor confidence. This optimism was driven by expectations of favourable market conditions following recent regulatory reforms.

Market activity was marked by both buying and selling, with some investors booking profits in specific sectors while shifting their portfolios to trending stocks. This resulted in a fluctuating pattern in the indices, though they remained in positive territory throughout the session.

Notably, shares of Appollo Ispat surged by 10%, hitting the upper limit of the circuit breaker, despite the company's inactivity and lack of recent financial disclosures. 

Other loss-making firms, including Khulna Printing, Global Heavy Chemical, Ring Shine Textile, Khan Brothers PP Woven, and Renwick, also saw significant share price increases, raising concerns of potential market manipulation.

Investors are advised to exercise caution amid these unusual price movements to safeguard their investments.

Conversely, the bank and telecom sectors, known for their large-cap stocks, experienced substantial declines, led by Square Pharma, which notably contributed to the index drop. 

Other significant decliners included Islami Bank, United Commercial Bank, Beacon Pharma, Southeast Bank, and Robi.

Despite these declines, gains in stocks such as Olympic Industries, BAT Bangladesh, Khan Brothers PP Woven, and Fortune Shoes helped mitigate the overall selling pressure, allowing the DSE index to end positively.

Sector-wise, the highest turnover was seen in food stocks, followed by fuel and banking sectors. 

Most sectors reported positive returns, with non-bank financial institutions, life insurance, and general insurance showing the strongest performance on the premier bourse.