Junk stocks still rising despite DSE caution
Prices of junk stocks are still rising despite Dhaka bourse's several attempts to discourage investors to pour money into the shares which may get delisted for their poor performance in the last five years.
Six out of the 15 junk shares posted a price rise of over 9 percent yesterday compared to the previous day.
Since August 7, the Dhaka Stock Exchange (DSE) has been informing investors every day that a review of the junk stocks is underway.
Of the Z category shares, Jute Spinners' shares rose 9.93 percent to Tk 83 yesterday and became the third highest gainer of the day. It advanced 18.57 percent in the last four trading days. Meghna Condensed Milk climbed up 9.86 percent yesterday and 84.85 percent in the last one month.
Meghna Pet Industries increased 9.80 percent, Shyampur Sugar Mills 9.78 percent, Imam Button 9.54 percent and Savar Refractories 9.50 percent.
Similarly, Dulamia Cotton added 8.57 percent, Sonargaon Textiles 7.14 percent, Samata Leather 6.98 percent, Shinepukur Ceramics 6.45 percent and ICB Islamic Bank 2.44 percent.
However, stocks of Zeal Bangla Sugar Mills fell 0.30 percent, Information Services Network dropped 0.68 percent, Kay & Que was down by 1.35 percent and Beximco Synthetics gave up 4.23 percent.
If these companies have no prospect to return to profit, they may get delisted from the DSE, said KAM Majedur Rahman, managing director of the bourse.
On September 23, the DSE formed a panel to sit with the officials of the Z category shares and suggest in two to three weeks on what could be done with the stocks.
Earlier on July 18, the Dhaka bourse delisted Modern Dyeing & Screen Printing and Rahima Food Corporation for the same reason.
