66 stocks can fall max 2pc a day
Shares of 66 listed businesses, for whom the floor price was recently lifted, can be permitted to fall no more than 2 % a day rather than the usual 10 per cent.
The market has a circuit breaker or trading curb which limitations abnormal price fluctuations to 10 % in both guidelines for all stocks.
However, the latest decision of the stock market regulator has stored unchanged the upper limit, meaning a 10 % rise might be allowed a day.
The ground price, which is actually a limit on how low prices can go, was set for all stocks on March 19, 2020 by the Bangladesh Securities and Exchange Commission (BSEC).
It was targeted at stopping the index from falling amid the pandemic-induced rout.
The figures were calculated predicated on the stocks' average charges for the preceding five times.
However the decision was criticized since it impacted normal trade.
This prompted the BSEC to select April 7 this season to free the 66 in the first phase.
The very next day, the DSEX, the benchmark index of the DSEX, dropped around 25 to 27 points solely for the free fall of the 66.
The whole market's impact that day was an 82-point plunge of the index.
Thanks to the brand new circuit breaker, the effects will be for the most part 5 points, whether or not all the corporations fall, said BSEC Spokesperson Mohammad Rezaul Karim.
The order has already been issued and can take immediate effect from today (Sunday), he said.
"We have taken your choice as per shareholders and stakeholders' demand," he said.
The main reason behind taking the decision is to save lots of investors, he said, adding that investors were in panic, so some shares could be downed to a high extent next 3 to 4 days.
When general investors offer away the shares, a vested group buys those, taking advantage of the reduced price. "We don't prefer to provide them that option," he added.
The BSEC also informed that the currency markets would remain open in upcoming strict lockdowns if banks were kept open.
