The New Nation - Internet Edition

Mashiur Rahaman

The Dhaka Stock Exchange (DSE) yesterday ends trading for the year 2007 with 91 percent growth in general index within the year. The index opened the year at 1583.09 points and closed with an additional 1434.12 points at 3017.21 points.

"Following this upward market trend, equity markets are expected to further flourish in the year 2008 with increasing market capitalization," said investors and market experts after the last trading session in 2007 at DSE.

During the last day's trading, DSE general index rose by 0.44 percent, added 13.334 points while closing the trade at 3017.21 points.

Talking to The New Nation, investors and traders have shown their optimism in coming year and expected to recover their capital losses, which they have put up with at the end of the departure year.

"Shares of Oil and Banking sectors are expected to lead the market growth in early 2008, where telecommunication sector is likely to join their upward trends by mid-2008," said an equity market analyst from the LankaBangla Finance Limited.

According to him, banking sectors played vital role in 2007 market growth, which is likely to continue during the early couple of months in 2008. "Annual profit announcements and dividends would keep the sector moving," he added.

On the other hand, share of petroleum companies are likely to overlap all other sectors, accelerated by the attachment of two government owned oil companies in capital business, concerning experts informed.

"Jamuna Oil with 1.30 crore shares and Meghna Oil with 1.20 crore share are expected to enter the business in early February 2008. Involvement of these two companies have already sparked positive movements into existing oil sectors," added equity experts.

"Even, many short term investors have withdrawn their investment from other sectors and are waiting for the new oil shares to appear," experts commented.

Tele-Communication sector is another sector, likely to join with equity market growth in coming year, said market concerns.

According to them, Shares of Grameen Phone and Tele Talk are expected in the capital market by the middle of 2008. Bangla Link has also intended to join the market trend by the end of 2008, as reported.

"Availability of these major Tele Communication companies would definitely give a boom to all similar sectors in the capital market," experts foretell.

"If capital business keeps flowing this way, coming 2008 would be an ideal year for equity business," said K M Al Mannan from LankaBangla Finance Limited.

Involvement of such blue-cheep companies in equity business would significantly increase total market capitalization, which means more shares available for trade and healthy business, added Al Mannan.

According to him, shares of some companies, which were trading in high rates, are likely to face technical corrections at the beginning of 2008. "Such corrections are expected mostly in banking sector," he ended.

Meanwhile, some investors and traders also expressed their disappointment over the Securities and Exchange Commissions (SEC) for their unwise actions, taken in 2007 to control the market.

"We believe that any SEC action is to control unregulated market, meant to minimize investors risk. But what we have witnessed last year was unwise and unexpected from them. It has crashed the market several times, forcing many small and short-term investors out of business," said investors while talking to the reporter.

However, they have expected that any SEC notification or action in coming years would appear with certain time period before their applications.

"Equity market moves on rumours and trends. Any certain notification by the SEC sparks panic among investors, ends with market crash as we have witnessed. We hope SEC would notice the matter seriously," they ended.

According to the DSE annual trading report issued yesterday for the year 2007, DSE All Share Price Index raised 95 percent and DSE 20 Index raised 79 percent.

Market Capitalization rose by Tk 8248.93 crore within the year, closing at Tk 31066.35 crore, where the highest figure was Tk 75774.68 crore and lowest was Tk 30883.05 crore as reported.

Total turnover in 2007 was reported 282.29 shares. Total 14 new companies enlisted with DSE in 2007 while the figure was 13 in 2006.

Trading in DSE and CSE will remain closed due to Bank Holyday, as announced.