Politically backed stocks see price momentum
Investor confidence has grown, leading to increased buying interest in certain stocks fueled by political optimism. However, stocks seen as less promising are being avoided or sold off by investors
Following the departure of Sheikh Hasina, resigning from her prime ministerial post, the prices of some politically-backed stocks have steadily increased, while others experienced sharp declines.
Investor confidence has grown, leading to increased buying interest in certain stocks fueled by political optimism. However, stocks seen as less promising are being avoided or sold off by investors.
During these two consecutive sessions, a dozen stocks experienced upward momentum amid increased investor buying interest.
These include three of Monno Group's companies – Monno Ceramic Industries, Monno Agro & General Machinery, and Monno Fabrics – as well as Dulamia Cotton Spinning, ACME Laboratories, Islami Bank, Dacca Dyeing, Quasem Industries, GQ Ball Pen Industries, Dhaka Bank, Tallu Spinning, Bangas, Saiham Cotton, Saiham Textile Mills, and The IBN SINA Pharmaceutical Industry PLC.
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Yesterday, the share price of Monno Ceramic Industries increased by 10%, reaching Tk83.60. However, this is still lower than the price of Tk116 in December last year.
Meanwhile, shares of Monno Group's other companies also saw gains: Monno Agro & General Machinery's share price rose by 8.75% to Tk501 after undergoing a significant correction, and Monno Fabrics' share price increased by 9.57% to Tk20.60.
In the day's session, the share price of Islami Bank Bangladesh PLC, one of the largest commercial banks in Bangladesh, rose by 9.82% to Tk35.80; Dulamia Cotton Spinning by 9.87% to Tk69; ACME Laboratories by 9.96% to Tk81.70; Dacca Dyeing by 9.78% to Tk10.10; Quasem Industries by 9.75% to
Tk39.40; GQ Ball Pen Industries by 9.68% to Tk162.10; Dhaka Bank by 9.35% to Tk11.70; Tallu Spinning by 9.84% to Tk6.70; Saiham Textile Mills by 9.74% to Tk16.90; and Saiham Cotton Mills Limited by 9.72% to Tk15.80.
On the other hand, investors are avoiding some companies' shares, which have seen sharp declines following the changes in the country's political situation.
These include Beximco Pharmaceuticals, IFIC Bank, Shinepukur Ceramics, S Alam Cold Rolled Steels, Rupali Life Insurance, Summit Alliance Port, Deshbandhu Polymer, Sandhani Life, Sea Pearl Beach Resort, Sonar Bangla Insurance, and Intraco Refueling Station Ltd.
The share price of Beximco Pharmaceuticals declined by 2.94% to Tk99.10 yesterday, despite being considered a blue-chip company by investors. Foreign investors hold a 27.93% stake in the company.
Moreover, the share price of S Alam Cold Rolled Steels decreased by 2.84%; Rupali Life Insurance by 2.93%; Summit Alliance Port by 2.93%; Deshbandhu Polymer by 2.96%; Sandhani Life by 1.76%; Sea Pearl Beach Resort by 2.96%; Sonar Bangla Insurance by 2.75%; IFIC Bank by 2.30%; and Intraco Refueling Station by 2.98%.
