United Air stocks rise on comeback rumours

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United Airways was the most sought-after share on the Dhaka Stock Exchange yesterday amid rumours that the private carrier is planning to make a comeback after a lull of more than three years.

The junk stock rose Tk 2.20, up 10 percent from the previous trading day, topping the gainers’ list on the day.

Some 36.43 lakh shares of the out of service airline amounting to Tk 80.16 lakh changed hands thanks to the higher demand. There was hardly any seller of the stocks.

United Airways began its commercial operation in 2007 and flight operations have remained suspended since 2016 due to unavailability of aircraft, among other reasons.

Another junk stock, Imam Button, also made it to the gainers’ list with 6.30 percent increase. “The regulators should find out who are playing with the stocks. Otherwise general investors will lose their interest in good stocks,” said a top official of a leading merchant bank.

He said all the good stocks were falling but junk stocks were rising. “This is not a good sign for the market.”

The DSEX, the benchmark index of the DSE, shed 13.12 points, or 0.25 percent, to close the day at 5,223.72.

The market closed flat as investors went for profit-booking and rebalancing before the beginning of the dividend declaration season for the companies whose financial year ended in June.

Selling pressure was mostly observed in ceramics, cement and telecom sectors. Grameenphone continued a negative trend for the second consecutive session, UCB Capital Management said in its daily market analysis.

Turnover, another important indicator of the market, dropped 2.1 percent to Tk 468.99 crore.

United Power Generation dominated the turnover chart, followed by Orion Infusion, Silco Pharmaceuticals, Beacon Pharmaceuticals, and KDS Accessories.

SEML IBBL Shariah Fund, a mutual fund, was the worst loser, shedding 9.90 percent.

Of the traded issues, 105 gained, 214 declined, and 35 remained unchanged.

The top three negative contributors to the index were British American Tobacco Bangladesh, Grameenphone and LafargeHolcim Bangladesh.

Chattogram stocks also nosedived with the bourse’s benchmark index, CSCX, giving up 36.49 points, or 0.37 percent, to stand at 9,697.56.

Losers beat gainers as 69 stocks advanced, 155 declined and 33 closed unchanged on the port city stock exchange. 
Source: https://www.thedailystar.net

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