Weak firms dominate weekly gainers list

Last week at the Dhaka Stock Exchange (DSE) saw an unusual trend, as the list of top gainers was dominated by weak and non-performing firms, once again raising questions about the role of market manipulators in driving prices.

Among the top performers, GQ Ball Pen surged 17.8%, Genex Infosys advanced 17.6%, Simtex gained 16.3%, and Dulamia Cotton rose 14.7%.

DBH First Mutual Fund also registered a sharp jump of 13.8%, while Navana CNG rose 12.7% and Miracle Industries gained 11%. 

Notably, Genex Infosys, Dulamia Cotton, and Miracle Industries are currently traded under the Z category, a segment for firms that fail to comply with regulatory requirements, while GQ Ball Pen remains in the B category. Navana CNG recently returned to the A category after paying out declared dividends, which earlier saw the company shifted to the Z category for failing to meet the deadline.

Miracle Industries drew particular investor attention after the Bangladesh Chemical Industries Corporation (BCIC) announced plans to purchase at least half of its annual bag demand from the company. The news triggered a rally in its share price despite its categorisation as a weak performer.

Infographics: TBS

The broader market, however, remained under pressure. The DSEX, the key index of the bourse, lost 34 points to close at 5,415, while the blue-chip DS30 declined by 4 points to 2,103. Daily average turnover slipped by 16.73% to Tk583 crore. Market capitalisation fell by 0.14% to Tk7.23 lakh crore, with 139 issues advancing, 219 declining, and 37 remaining unchanged over the week.

In its weekly review, EBL Securities noted that the market endured another challenging week, with broad-based selloffs and no clear catalyst to revive investor confidence. While bargain hunters selectively targeted stocks trading at attractive levels, the overall weakness in market momentum kept indices in negative territory. It added that investors remained cautious ahead of the earnings season, preferring to secure short-term gains and closely watch the market's direction.

Investor activity was most prominent in the textile sector, which accounted for 15.8% of total turnover, followed by pharmaceuticals at 14.2% and banking at 9.9%. 

Summit Alliance Port, Khan Brothers PP Woven Bag, Orion Infusion, Fareast Knitting and Dyeing, and Techno Drugs led the turnover chart.

Sector-wise, most segments closed lower, with the banking sector losing 1.9% to become the worst performer, while services rose 3.7% to emerge as the week's best gainer. 

On the losing side, Baraka Power dropped 20.7%, Zaheen Spinning fell 20.6%, International Leasing declined 18.8%, Social Islami Bank lost 17.1%, and Global Islami Bank shed 16.7%.

Baraka Power and Zaheen Spinning were relegated to the Z category after authorities noted their operations had remained shut for more than six months with no signs of reopening. 

Meanwhile, shares of several banks, including Social Islami, Global Islami, First Security Islami, Exim Bank, and Union Bank, continued to fall amid concerns over their impending merger under a Bangladesh Bank initiative.