Home ›› 09 Mar 2022 ›› Front
The securities regulator BSEC has instructed stock exchanges to calculate the lower limit circuit breaker at 2 per cent for all issues but the upper limit circuit will remain the same at 10 per cent.
The move was taken to prevent the market crash as the benchmark DSEX index shed almost 550 points in the last eight consecutive sessions.
“The Bangladesh Securities and Exchange Commission directs temporarily the Dhaka Stock Exchange and the Chittagong Stock Exchange to impose standard price change limit of 2 per cent based on the previous trading day’s price,” said the regulator in an order on Tuesday.
However, the upper limit of the circuit breaker and other conditions will remain unchanged, it said.
The order will have immediate effect and remain in force until further order, according to the BSEC.
In a similar move taken by it on April 10, 2021, to avoid the market fall caused by the Covid-19, the BSEC set the lower limit circuit breaker at 2 per cent for 66 companies three days after the withdrawal of floor prices of the companies.
On June 17 of the same year, the regulator had revoked the floor prices of all listed securities, allowing the market to the normal trade.
Following Tuesday’s move, the benchmark DSEX index managed to gain some lost ground, snapping its four-session losing streak.
At close, the DSEX gained 17 points or 0.27 per cent to settle at 6,474, hitting as low as 6,318 and as high as 6,497. In the previous four sessions, it shed about 300 points. Since the Russia-Ukraine conflict, the index lost 550 points.
