Stocks gain 10% as regulator sets floor price

DSEX, the benchmark index of the Dhaka Stock Exchange, gained 10.14% on Thursday as the stock market regulator set floor price, an average of the last five trading sessions of listed securities. 

The trading session on the day was only 30 minutes, which started at 2:00pm and closed at 2:30pm due to delay over setting the floor price. 

On Thursday, Bangladesh Securities Exchange Commission (BSEC), the stock market regulator, issues a circular directing the stock exchanges that the opening price of any listed securities would be set on the average of the closing prices of immediately preceding five trading days. 

This averaged price calculated for each scrip shall be considered as the floor price and the lowest limit of the circuit breaker. 

This shall be effective from March 19, 2020 and shall remain in force until further order. 

Upper (10% up) limit of the circuit breaker and other conditions shall remain unchanged. 

In the face of free fall in the last couple of weeks after the outbreak of coronavirus, the BSEC made the decision. In last one month, the key index of the DSE lost about 20%.   

DSEX closed at 3,974.9 points yesterday after gaining 10.29% during the session while CASPI of Chittagong Stock Exchange (CSE) declined 1.53% to close at 10,963.4 points in the 30-minute trading session.

DSE Shariah based index DSES advanced 10.14% to end at 919.4 points, while blue-chip index, DS30, went up by 10.17% to close at 1,325.8 points.

The banking sector contributed 19.7% of the total turnover while ceramic, pharmaceuticals and engineering sectors contributed 17.9%, 13.2% and 8.9% respectively, showed the daily market analysis of UCB Capital Management Limited. 

Monno Ceramic Industries Ltd secured the leadership position on the top turnover chart with a turnover of Tk4 crore with its share price closing at Tk131.4 per share. 

Hakkani Pulp & Paper Mills Ltd secured the highest gain of 29.3% during the session. 

Bangladesh Industrial Fin Co Ltd turned out the worst loser with its price declining by 13%. 

Among the traded issues 141 gained, 49 declined and 152 remained unchanged during the session in DSE while 14 gained, 62 declined and 9 remained unchanged in CSE.

On Wednesday, following free-fall of stocks prices, Dhaka and Chittagong Stock Exchanges decided to cut trading time by one hour effective from Thursday.