Dhaka, Jan 9, 2008: Share price of the Jamuna Oil Company on debut Wednesday jumped to highest Tk 952, over 95 times from its face value, at the Dhaka bourse.

   The state-owned oil marketing company started offloading 1.35 crore shares of Tk 10 each under the direct listing regulations on the bourses.

   ‘It is the reflection of over-enthusiastic investors for the SoE’s shares,’ said Yawer Sayeed, managing director and chief executive officer of the Aims of Bangladesh.

   The price level was irrational, he said adding that ‘We, however, welcome the entry of the SoE in the capital market.’

   Jamuna Oil’s share price recorded its highest Tk 780.10 at the Chittagong Stock Exchange Wednesday.

   Salahuddin Ahmed Khan, chief executive officer of the DSE, said, ‘Irrational price level of Jamuna Oil’s share might throw some investors into risk.’

   He said share price of the SoE rose due to over enthusiasm among the investors.

   However, closing price of Jamuna Oil was Tk 600 at the DSE and Tk 601.30 at the CSE.

   Jamuna Oil sold off its 1,58,200 shares worth Tk 10.52 crore at the DSE while it offloaded 16,400 shares worth Tk 1.07 crore at the CSE.

   After a 10-minute price build up period, ICB Securities Trading Co, the seller’s agent, started selling shares of

   Jamuna Oil at the best market price.

   The offloading went through a special trading system on the first day, when trading took place under the spot settlement system between 10am and 12 noon. The system remains same also for today except the price build up period.

   Stocks gained on Wednesday due to the buying spree from the investors, said analysts.

   The DSE general index gained 42.33 points or 1.44 per cent to close at 2989.36, while its blue chips index, DSE20, advanced by 34.25 points or 1.42 per cent to close at 2449.40.

   The CSE selective categories index gained 67.40 points or 1.40 per cent to close at 4872.86, while its blue chips index, CSE30, advanced by 92.84 points or 1.37 per cent to close at 6888.28.

   Turnover at the DSE also increased to Tk 136.95 crore from the Tuesday’s Tk 81.55 crore and the CSE turnover went up to Tk 23.60 crore from Tk 12.03 crore.

@ The Bangladesh Journal