BSEC reintroduces pre-opening session

The Bangladesh Securities and Exchange Commission (BSEC) has reintroduced the pre-opening session on the stock exchanges with effect from Sunday.

“The pre-session, however, was reduced from 15 minutes to 5 minutes,” BSEC spokesperson Mohammad Rezaul Karim told The Business Post.

But the 10-minute post-closing session will remain unchanged, he said. The Dhaka Stock Exchange and Chittagong Stock Exchange trade regularly from 9:30 am to 1:50 pm.

As per the new decision, the pre-open session will commence from 9:25 am before trading for the day begins.

Brokers place the orders in the pre-open session, so that depending on the opening prices, the orders get executed immediately once the trading begins.

A pre-open session helps determine the opening price for the day, and also reduces the load on the system in the opening minutes.

On May 20 this year, the securities regulator temporarily suspended the 15-minute pre-opening session on the bourses citing the misuse of the opportunity.