BSEC lift floor price restriction for all but 35 scrips

Business Report :
There will be no floor price restriction on listed securities from Sunday (21 January), except for 35 large cap ones.
In an order on Thursday, the Bangladesh Securities and Exchange Commission (BSEC) has ordered the two bourses for immediate withdrawal of the floor price restriction the regulator had imposed on 28 July 2022.
Floor price will remain for the shares of Anwar Galvanizing, Baraka Power, British American Tobacco, Beximco Ltd, Bangladesh Submarine Cable Company, BSRM Ltd, BSRM Steels, Confidence Cement, DBH Finance, Doreen Power, Envoy Textile, Grameenphone, HR Textile, IDLC Finance, Index Agro, Islami Bank, KDS Accessories, Khulna Power, Kattali Textile, Malek Spinning, Meghna Petroleum, National Housing Finance, National Polymer, Orion Pharma, Padma Oil, Renata, Robi Axiata, Saiham Cotton, Shasha Denim, Sonali Paper, Sonar Bangla Insurance, Shinepukur Ceramics, Shahjibazar Power, Summit Power and United Power.
The 379 stocks, mutual funds, corporate bonds and debentures, listed with the Dhaka Stock Exchange (DSE), that got rid of the restriction will now be under regular circuit-breaker mechanism from Sunday. This means their prices may rise or fall by up to 10% a day.
Usually, the higher the tick price, the narrower the circuit breaker.
For instance, scrips trading at prices up to Tk200 can rise or fall by 10% a day, while the limit is 8.75% for scrips trading at the Tk200-500 range.
Thus, the scrips priced above Tk5,000 will be under a 3.75% circuit breaker.
For newly listed scrips, the circuit breaker for the first trading session will be 50% of the issue price. On the second trading day, the price can go 50% higher or lower from the closing price of the first session.
In the third session, the scrips will follow the regular circuit breaker.
Earlier in the first week of January, the Bangladesh Securities and Exchange Commission (BSEC) assured the stock market intermediaries that the regulator will withdraw the floor price restriction gradually after the national election which is scheduled to be on Sunday.
The floor price is the lowest price at which a stock can be traded.
The floor price mechanism that was imposed on changing share price on 28 July 2022 was playing a crucial role to make a haggard market, participants at a meeting had said. Earlier, Saiful Islam, president of DBA, said the turnover of the stock exchanges drastically declined due to the floor price restriction. “If the share price is stuck at one place, then no investor will come to this market.”