In the past week, Dhaka’s stock market witnessed a rise in both the index and market capitalization, despite the persistent dominance of poorly performing companies. According to the weekly report of the Dhaka Stock Exchange (DSE), only two companies from the top ten in trading volume belong to the ‘A’ category, while three are from the ‘B’ category, and five are underperforming ‘Z’ category companies that offer no dividends. New Line Clothings Limited, which last issued dividends in 2021 and held its last annual meeting in 2022, topped the trading list despite its poor performance. Similarly, Apollo Ispat Complex Limited, which has not provided dividends since 2016, also ranked high, raising concerns about speculative investments in low-quality shares.

DSE director Minhaz Mannan Emon warned that liquidity shortages are driving investors toward risky, poorly performing stocks, which inflate their value but increase market risks. He also highlighted manipulation by certain companies and brokerage houses using misleading information to exploit market volatility. The Bangladesh Securities and Exchange Commission (BSEC) recently reported that four brokerage houses embezzled around 300 crore BDT using fraudulent software.

Meanwhile, the banking sector struggled, with stock prices declining by 23.72% and the index dropping from 648 to 494 points over five days. The insurance sector also saw a price drop of 16.62%, while the financial and energy sectors performed well, with prices rising by 6.68% and over 35%, respectively.

Overall, DSEX, the main index, rose by 22 points, while DS-30 and DSES increased by 6 and 7 points, respectively. Out of the traded companies, prices of 183 increased, 166 declined, and 49 remained unchanged. Despite a 1% decline in average weekly turnover, market capitalization grew by 2.35%. Additionally, block market trades totaled 106 crore BDT, with ACI Limited leading in sales at 25.5 crore BDT. The ceramics sector delivered the highest returns, while the financial, life insurance, and general insurance sectors lagged. A task force established for market reforms also submitted initial recommendations on margin loans and mutual funds to BSEC, aiming to reduce volatility in the stock market.