Troubled firms dominate gainers

At the end of a volatile session, DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), closed 0.15% higher at 6,310 points on Wednesday.

Thanks to the rising stock prices of a bunch of poorly performing firms that were emerging at the top spots of speculation.

Each of the top ten gainers was from a group of listed firms that had long been sinking into various troubles in business.

Stock brokers said it seemed to have become a widely believed idea that when the broader market enters price correction phases, small-cap and junk stocks would move higher.

Some sharp, strong rallies in troubled company shares this year strengthened the belief, and speculative trading in the scrips became trendy at the bourses of Dhaka and Chattogram.

For example, lossmaking Olympic Accessories, which led the gainers with a 10% rise, got rid of the floor price before many of the stronger companies, while some argued that despite losses, the company might have been lucrative to many because of its shares' price level—near to the face value.

Another troubled firm, Prime Islami Life Insurance, left many of its better-performing competitors and surged to the second spot on the DSE gainers' table.

Simtex Industries, despite having litigation problems over control of the firm, was chased by stock investors.

Imam Button Industries, after the regulatory efforts to be back in production, was the fourth-highest gainer on the DSE.

The top ten gainers' list also included Northern Jute Manufacturing Company, which was weakened under the control of PK Halder associates, asset evaporator Jute Spinners, GQ Ballpen, RSRM Steel, which has been out of production, Aziz Pipes and Yeakin Polymer.

Chronic problems over the years have been synonymous with each of them, said stockbrokers and analysts.

However, at the end of the day, 124 of the DSE scrips, mostly small-cap ones, advanced and 49 declined.

The gainers helped the bourse return to green territory at the end of the session, offering the market a breathing space amid the recent selloff and volatility.

Meanwhile, market turnover increased slightly, rising by 6.6% to Tk630 crore.

On the sectoral front, food, pharmaceuticals, and life insurers contributed most to the DSE turnover on Wednesday.

Jute, IT, and life insurance were the winning sectors, while service and real estate, tannery, and general insurance sectors led the losers.

CSCX, the broad-based index of the Chittagong Stock Exchange (CSE) was 0.06% higher at 11,137, while turnover in the port-city bourse surged to Tk530 crore from Tk24 crore because of some large trades.