Stock market regulator the Bangladesh Securities and Exchange Commission on Wednesday decided to lift the floor prices of 66 publicly traded companies in the Dhaka and Chittagong Stock Exchanges.
The commission decided it at its 769th meeting held Wednesday, chaired by its chairman Shibli Rubayat Ul Islam.
Floor prices are set based on average closing prices of the preceding five trading days and the trading of securities is not allowed under this price.
“Since the prices of these companies are stuck by the floor prices and the trading of those shares is also very slow the commission took the decision to make trading vibrant,” a high official of the regulator told the Business Post seeking anonymity.
He also said the initiative was taken for the sake of stock investors.
The companies include, Peoples Leasing, RN Spinning, Bangladesh Service, IFIL Islamic Mutual Fund, Zaheen Spinning, Ring Shine Textile, Olympic Accessories, DBH First Mutual Fund, Phoenix Finance First Mutual Fund, Nurani Dyeing and Sweater, Regent Textile, SEML FBLSL Growth Fund, Evince Textile, Pacific Denims, Metro Spinning, Kattali Textile, Far Chemical, Deshbandhu Polymer, Yeakin Polymer, Safko Spinning, Western Marine Shipyard, Central Pharma, Beach Hatchery, Simtex Industries, Shepherd Industries, Hamid Fabrics, Prime Textile, Saiham Cotton, Bangladesh Building System, Golden Harvest Agro Industries, AGC Agro Biotech, Bengal Windsor Thermoplastic, Khulna Printing and Packaging, Silva Pharma, Indo-Bangla Pharmaceuticals, Argon Denims, Coppertech Industries, Shasha Denims, Shurwid Industries, Esquire Knit Composite, VFS Thread Dyeing, IPDC Finance, Phoenix Finance, Advent Pharma, RSRM, Queen South Textile, Mutual Trust Bank, Oimex Electrode, Rupali Bank, Saiham Textile, Sonargaon Textile, Alif Industries, Global Heavy Chemical, Navana CNG, DESCO, Unique Hotel, Standard Insurance, Fareast Islami Life Insurance, Uttara Finance, Usmania Glass, Khulna Power, Nahee Aluminum, Dulamia Cotton, Sinobangla Industries, Paramount Textile and M L Dyeing.
On March 19, 2020, the BSEC issued a circular directing the stock exchanges to set the opening price of listed securities averaging the closing prices of the preceding five trading sessions.
This average price calculated for each stock shall be considered as the floor price and the lowest limit of the circuit breaker.