Junk stocks took prominent positions in the gainers’ list yesterday, when the prime index of Dhaka Stock Exchange (DSE) hit a record high.
The DSEX, the benchmark index of the country’s premier bourse, maintained its upward trend for the second day in a row to surge by 47 points, or 0.68 per cent, to 6,916.
For all latest news, follow The Daily Star’s Google News channel. This is the highest level the index has ever reached since its inception in 2013. The blue chip stock index, DS-30, edged up 20 points to 2,474 while the Shariah index, DSES, rose 5 points to 1,495.
However, the presence of junk stocks in the gainers’ list proves that these stocks are being gambled with, according to a stock broker.
Mithun Knitting and Dyeing, a junk stock, topped the list with a 10 per cent increase.
Similarly, other junk stocks — Tamijuddin Textile Mills, Tallu Spinning Mills and Meghna Condensed Milk Industries — were among the list’s top 10, each rising more than 8 per cent.
“There is no reason behind the rise of these stocks other than manipulation,” said the stock broker.
“So, general investors should be cautious about these stocks while the regulator should find the culprits responsible for this gambling,” he added.
On condition of anonymity, a senior official of the Bangladesh Securities and Exchange Commission (BSEC) said they would keep an eye out for signs of foul play.
The BSEC regularly fines gamblers but still the general investors need to be careful with their funds, he said.
“If they don’t buy these stocks, then the manipulation plan is spoiled,” he added.
Turnover, another important indicator of the market, edged up 5 per cent to Tk 2,366 crore yesterday.
At the DSE, 192 stocks advanced, 149 declined and 32 remained unchanged.
Stock of Beximco were traded the most, worth Tk 150 crore, followed by LafargeHolcim Bangladesh, GPH Ispat, Beximco Pharmaceuticals and British American Tobacco Bangladesh.
Prime Finance & Investment shed the most, falling 6.17 per cent, followed by Metro Spinning, NLI First Mutual Fund, Premier Leasing & Finance and Zahintex Industries.
The port city bourse also rose yesterday as the CASPI, the general index of Chittagong Stock Exchange, rose 159 points, or 0.79 per cent, to 20,156.
Among 320 stocks to undergo trade, 170 advanced, 124 dropped, and 26 remained unchanged.
