The New Nation - Internet Edition

UNB, Dhaka

The Dhaka Stock Exchange (DSE) witnessed a volatile week that ended Thursday owing to abrupt surges in trade volume of directly listed shares of Jamuna Oil and Meghna Petroleum. "The volatility was further fuelled with allowing the netting and margin (1:1) facilities," managing director and CEO of AIMS Bangladesh Yawer Sayeed told UNB on Friday.

During the week's trading at the DSE, Meghna Petroleum and Jamuna Oil occupied 26 percent of the total turnover while the netting and margin facilities pushed up the week's total turnover by almost double (94 percent) to Tk 14.25 billion from previous week's Tk 7.35 billion.

Daily average turnover of the week also increased by 94 percent to Tk 2.85 billion from Tk 1.47 billion in the previous week. Stockbrokers expect even higher turnover next week, as the margin facility comes into effect beginning of next week (Sunday). Brokers as well as the regulator, the Securities and Exchange Commission (SEC), advised the investors particularly the small ones to cautiously use the loan facility.

"The borrowing proportion should not be higher than what an investor will invest from his pocket," said Yawer Sayeed. During the week, the DSE benchmark index (DGEN) rose 93 points or over 3 percent to close at 3,000 points mark, rising from 2,907 points on the opening day of the week (Sunday). The All Share Price Index (DSI) also increased by 74 points or 3 percent to close at 2,523 points.

Market capitalisation increased 2.5 percent to record highest Tk 802 billion from Tk 782 billion on the opening day of the week. All the top 10 gainers of the week except Wata Chemicals (Z category) were A-category shares.

They were BSC, Purabi General Insurance, Karnaphuli General Insurance, BGIC, Federal Insurance, Central Insurance, Pragati Insurance, Sonargaon Textile and BDCOM. All the top losers were from Z category.

They were M Hossain Garments, BCIL, BD Luggage, Alpha Tobacco, Maq Paper, Maq Enterprise, Samata Leather, BD Dying, Ctg Vegetable and Sajib Knitwear.

Besides Meghna Petroleum and Jamuna Oil, other turnover leaders during the week were Grameen Mutual One, AB Bank, AIMS 1st Mutual Fund, Summit Power, BRAC Bank, IFIC Bank, Lanka Bangla Finance and National Bank.