Weak stocks kick start FY24 with sharp gains

The first session of the fiscal year was almost flat for the overall stock market as DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), closed the volatile session 0.01% lower at 6,343.

Leaving most of the blue-chip stocks stuck on the floor and profit-making mid-cap company shares in selling pressure, many of the junk and loss making firms kick started the fiscal year with sharp gains defying the previous week's regulatory gesture to tame them.

RSRM Steel, a firm that went out of production due to nonpayment of utility bills and bank loans, again occupied the top gaining spot on Sunday. Its shares, from the recent dip that followed its category downgraded to Z in the DSE, surged 10% to the top circuit.

Dacca Dyeing shares gained 9.93%, followed by Shyampur Sugar, Safko Spinning, Fu-Wang Ceramic, Alltex Industries, Sonargaon Textile, Shurwid, and Zeal Bangla Sugar Mill.

Each of them has its long history of struggles to keep production up in a profitable way to pay enough dividends to the shareholders.

However, the price of most of the weak company shares fell sharply earlier this year and that attracted many speculators on the bourses, said stockbrokers.

DSE turnover fell to Tk515 crore on Sunday, down from Tk770 crore in the previous session.