The New Nation - Internet Edition

Staff Reporter

Disappointing trade of petroleum shares have plunged the Dhaka Stock Exchange (DSE) to close in red despite significant increase in turnover and capitalization during last week ended yesterday.

All three indexes in the DSE closed with loss in this weekend but the weekly turnover increased by 2.4 crore (79 percent) in the week. On the other hand, weekly market capitalisation was also reported to have increased by 0.52 percent, added Tk 410.53 crore from the week opening figure.

Shares of the Jamuna Petroleum Limited alone contributed most vigorously to keep the DSE weekly index into negative zone. The script topped the weekly top 10 losers list. In the week, shareholders of this script have digested a loss of Tk 151 per share.

It was obvious and was obvious to face serious technical corrections, said an expert to The New Nation, while explaining the poor performances in oil shares last week.

Trading of Jamuna PET jumped up to higher prices from the very first trading, he added.

Jamuna Petroleum finally enjoyed some growth in the last trading day, added Tk 18 each share. The script closed at Tk 379 yesterday with 34.07 lacs trade volume. Besides, shares of other petroleum scripts also traded low during last week and witnessed moderate gain in the closing day.

The newcomer Meghna Petroleum added Tk 60 per share, closing at Tk 360 per share from the opening price Tk 300 per share.

Padma Oil, the older petroleum script in equity business also lost Tk 43.8 per share within last weeks trading. It closed weekly trading at Tk 1268.8 per share, which was Tk 1312.6 per share in the week before.

So far my market insight, the petroleum scripts have witnessed enough corrections during last week, said a market expert.

According to him, both the newcomer petroleum shares prices are now at steady level, which has less possibility to face any significant decline. But the shares have to be available in the market for trading, he said.

"My advice to the investors is moderate buying in Jamuna and Meghna shares, but in lower volume," he added.

He, however, urged both the new petroleum companies and their selling agents to release their shares into open market for frequent trading.

"Artificial share crises, as we have witnessed last week, eventually mark the script as risky. Doubtlessly it was an unwise strategy by the administration and should be avoided in coming weeks," he added.

Overcoming last week's disappointment, the petroleum shares are expected to enjoy a sparkling week," he further added.

However, the UCBL was the only blue-collared Banking script that traded into red last week. Each shares of the company lost Tk 221.5 with in the week at Tk 4390 per share closure.

At the trading weekend, the DSE General index lost 41.25 points, closing at 2951.91 points. The DSE 20 Index also lost 8.27 pints, while closing at 2428.40 points. The DSE All Share Index lost 32.51 points at 2490.23 closure points.

Within the last week, shares price of 132 companies advanced, 118 declined and 7 remained unchanged. Trading of remaining 27 other shares were resumed last week.