Low-Performing Stocks Dominate Gainers’ Chart Amid Market Slump

Analysts warn of manipulation as junk, B-category shares surge despite poor fundamentals

Aug 22, 2025 2 min read

The stock market witnessed another unusual rally on Thursday as low-performing and non-operational stocks topped the gainers’ list, raising concerns of market manipulation amid a broader downturn.

Out of the day’s top 10 gainers on the Dhaka Stock Exchange (DSE), two were junk stocks while seven belonged to the B category. These firms—many with suspended operations, outdated financials, or poor dividend records—are outperforming fundamentally stronger peers that continue to post profits and dividends.

“Speculative trading and short-term motives appear to be driving these rallies. No major fundamental changes have been observed in most of these companies,” said Md Sajedul Islam, Managing Director of Shyamol Equity Management.

Questionable Price Movements

Information Services Network surged 10% on Thursday to become the day’s top gainer, despite reporting a Tk 1.86 million loss in nine months to March and declaring only a 0.5% cash dividend for FY24. Its stock has soared 47% this week, closing at Tk 72.6. The company, which failed to maintain the mandatory 30% sponsor-director holding (currently 21.47%), denied having any undisclosed price-sensitive information in response to a DSE show-cause notice.
Samata Leather Complex, which has not published any quarterly results for FY25, jumped 9.92% to Tk 104.2. Its price has risen 47% in a month, despite no visible business activity.
Junk stocks Zahintex Industries (operations suspended) and Zeal Bangla Sugar Mills surged 8.7% and 8.3%, respectively, ranking among the day’s top 10 gainers.

Analysts said such movements are unlikely without manipulation. “A stock rallies when a group artificially influences prices, drawing others to join in for quick profits,” Mr. Islam noted, cautioning investors against chasing poor-performing shares.

Market Overview

Meanwhile, the benchmark DSEX index extended losses for a third consecutive session, edging down 4 points (0.08%) to 5,375. It has lost 45 points over the past three sessions.

The DS30 index rose 3 points to 2,089, while the DSES Shariah index gained nearly 3 points to 1,180.

Turnover remained subdued at Tk 7.67 billion, down 20% from Tk 9.54 billion a day earlier.

The Chittagong Stock Exchange also closed lower, with the CASPI falling 65 points to 15,025 and the CSCX down 42 points to 9,218.