2025 kicks off with junk stocks dominating gainers’ chart
Analysts suggest that speculative trading and short-term profit motives may have fueled the rally, as no major changes in fundamentals were observed in most of these companies
Z-category stocks, commonly known as junk shares for their poor performance and high risk, made a surprising start to 2025 by topping the gainers' chart in the year's first trading session.
Despite their reputations for weak fundamentals and irregular compliance, investors showed significant interest in these stocks, pushing their prices upward.
According to LankaBangla Securities' daily market review, shares of Khulna Printing and Packaging, a non-operational company owned by SBAC Bank's former chairman SM Amjad Hossain who is allegedly involved in money laundering, jumped 9.41% to reach Tk9.3 yesterday.
Other top gainers, also traded under the Z category, included Yeakin Polymer, Regent Textile, and Tallu Spinning. These companies, which are also out of operation, experienced significant increases in their share prices on the first trading day of the year, the review added.
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Analysts suggest that speculative trading and short-term profit motives may have fueled the rally, as no major changes in fundamentals were observed in most of these companies.
Market observers warn that while the surge in Z-category stocks may offer quick returns for some, the inherent risks make them an unpredictable choice for long-term investments. Investors are advised to exercise caution and consider the financial health of these companies before diving into speculative trades.
The Dhaka Stock Exchange (DSE) saw little movement overall, with its broad index remaining flat. The benchmark DSEX of the bourse rose slightly by 1.71 points to close at 5,218, while the blue-chip index DS30 registered a modest gain of 2.20 points, finishing at 1,941.
Market activity reflected a mixed performance among the traded stocks: 131 advanced, 185 declined, and 80 remained unchanged.
Investor participation remained lacklustre, as daily turnover at the DSE dropped by 11.52%, settling at Tk330 crore — a notable decline compared to the previous session.
Orion Infusion emerged as the most traded stock of the day, but its share price plunged by 8.74%, making it the worst performer. The sharp decline was primarily driven by profit-booking, as investors sought to capitalise on recent gains from the stock's rally.
Other top-traded stocks included Robi, Pubali Bank, and Islami Bank.
EBL Securities said in its daily market review, that the premier bourse of the country started the year with a lacklustre session, while the benchmark index managed to stay afloat due to price appreciation of particular large-cap scrips while most investors remained clung to an uncertain market outlook.
The indices observed flat momentum throughout the session as investors remained active on both sides of the trading fence, while trading activities remained stagnant due to a lack of New Year optimism among investors amidst the persistent pessimism pervading the trading floor, it added.
