Stocks climb as BSEC imposes ‘floor price’

FE ONLINE REPORT | Sunday, 31 July 2022

Stocks ended sharply higher on Sunday, with all three indices of the prime bourse rose more than 2.0 per cent each, as the stock market regulator set the floor price again on all securities.

Following the regulatory intervention, the market opened sharply higher and the key index jumped more than 100 points after the first hour of trading, eventually ending over 153 points higher.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), soared 153.45 points or 2.56 per cent to 6,134.

The continuous fall of stock prices brought down the DSE key index to a 14-month low Thursday which compelled the Bangladesh Securities and Exchange Commission (BSEC) to impose a ‘floor price’ on all securities.

The floor price is calculated on the immediate five preceding days’ average price. The floor price is the lower limit circuit breaker and no stock will allow going down below the floor price.

However, after setting the floor price, some 280 companies’ shares prices rose automatically on Sunday after adjustment of floor price.

Two other indices closed sharply higher. The DS30 Index, which consists of the blue-chip companies, rose 48.32 points to 2,193 while the DSES Index, which represents Shariah-based companies, soared 31.27 points to 1,339.

Turnover, another important indicator of the market, stood at Tk 5.68 billion, which was Tk 4.42 billion in the previous sessions.

Market operators said the regulatory intervention halted the market fall as the securities regulator set floor price on all securities despite criticism from institutional investors and foreign investors.

Of the 382 issues traded, prices of 362 shares closed higher, seven lower and 13 issues remained unchanged on the DSE trading floor.

Beximco was the most traded stock with shares worth Tk 298 million changing hands, closely followed by KDS Accessories, Matin Spinning Mills, Orion Infusion and Intraco Refueling Station.

The Chittagong Stock Exchange (CSE) also ended sharply higher with the CSE All Share Price Index (CASPI), soaring 379 points to settle at 17,976 and its Selective Categories Index (CSCX) rising 227 points to close at 10,770.

Of the issues traded, 267 advanced, four declined and 12 issues remained unchanged on the CSE trading floor.

The port-city bourse traded 4.56 million shares and mutual fund units with a turnover value of Tk 124 million.

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