Stocks maintain upward curve

The stock index has continually soared for the past three days, lifting the benchmark index of Dhaka Stock Exchange (DSE) to a new high yesterday, while junk stocks were the top gainers.

The DSEX, the DSE's benchmark index, rose 49 points, or 0.73 per cent, to 6,748. This is the highest point to be reached by the index since its inception in 2013.

On the same day, the DS-30, the blue chip stock index, remained almost unchanged at 2,427 points.

Stocks of First Finance, which ranked as a Z category stock due to its failure to provide dividends, hold annual general meetings or keep operations running, soared the highest 10 per cent in the DSE.

Another two junk stocks, Jute Spinners and Bangladesh Industrial Finance Company, advanced 10 per cent each.

A company is allowed to rise a maximum 10 per cent in the stock market on a normal trading day.

Some rogue players are targeting junk stocks to gamble and these are the pawns only, said a top asset manager.

General investors should not even think about having a look at these stocks, rather they can invest in well-performing stocks based on their fundamentals, he said.

"However, most of our investors are looking for such 'items', which can be dangerous for them in the long run," he added.

Turnover, an important indicator of the market, went up by around 11 per cent to Tk 2,953 crore. At the DSE, 204 stocks advanced, 146 fell and 25 remained unchanged.

Stocks of Beximco were traded the most, worth Tk 148 crore, followed by IFIC Bank, LankaBangla Finance, Saif Powertec and Malek Spinning Mills.

Sonali Paper & Board Mills shed the most, losing 6.49 per cent, followed by Progressive Life Insurance Company, Miracle Industries, Sonali Life Insurance Company and Rahima Food Corporation.

Chittagong Stock Exchange (CSE) also soared yesterday. The CASPI, the general index of the port city bourse, increased 134 points, or 0.69 per cent, to 19,650.

Among the 320 stocks to undergo trade, 170 rose, 126 fell and 24 remained unchanged.