Z-category stocks dominate weekly gainers despite market slump
Insiders say investors largely targeted low-priced stocks during the week
Despite a steep fall in the benchmark indices last week amid Middle East tensions, several Z-category stocks – commonly considered junk shares – dominated the gainers' chart on the Dhaka Stock Exchange (DSE).
Premier Leasing emerged as the top gainer of the week, surging 44.44% to close at Tk2.60. Fareast Finance, FAS Finance and Peoples Leasing each rose 41.18% to Tk2.40, while International Leasing advanced 37.50% to Tk2.20.
Other notable gainers included Familytex, which climbed 31.82% to Tk2.90, Tung Hai Knitting rose 30.77% to Tk3.40, and Nurani Dyeing gained 29.63% to Tk3.50. Generation Next increased 25% to Tk3.50, while Appollo Ispat advanced 24.14% to close the week at Tk3.60.
However, all the companies that led the weekly gainers' chart are currently loss-making, according to market data. Several of them are also facing severe operational challenges.
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Market information from the Dhaka bourse shows that Familytex, Tung Hai Knitting, Nurani Dyeing, Generation Next and Appollo Ispat are currently out of operation.
A number of the top gainers are non-bank financial institutions (NBFIs), many of which are struggling with weak financial conditions and potential liquidation risks.
Market insiders said investors largely targeted low-priced stocks during the week, regardless of their financial performance or operational status. They added that speculation surrounding the future of troubled NBFIs has also fuelled interest in these shares.
Earlier, the central bank had initiated steps to liquidate several weak and loss-making NBFIs. However, following the change in government, investors appear to be betting that these institutions may avoid liquidation. Driven by such expectations, many traders have been buying these stocks in hopes of booking short-term gains.
