Bangladesh Securities and Exchange Commission (BSEC) re-introduced the lowest price in the stock market in July this year to prevent continuous price decline. After the implementation of the lowest price, the market calmed down, but now most of the share prices remain unchanged. Market analysts have criticized the lowest price, but a section of investors are relieved. And those who are stuck on the lowest shares are criticized.
Analyzing the data provided by DSE, it can be seen that there is a week of relief in the stock market after the introduction of the lowest price. On the first day after lunch, the main stock market of the country, Dhaka Stock Exchange, saw a big rise in the price index. On that day DSE’s flagship index ‘DSEX’ rose 153 points. Two other indices of the major stock market also rose on that working day. At the same time, out of 382 companies that participated in the transaction on that day, the share prices of 362 companies increased.
Also, after the implementation of the lowest price, the market capitalization of the stock market increased by Tk 21 thousand crores in the first week. The lowest price was initially considered a boon for the stock market as the index jumped and market capitalization increased. However, as the days go by, the discussion and criticism about the matter are increasing. As People say the lowest price is preventing the share price from falling forcefully which result, in the market stakeholders also opposing the lowest price.
Due to the lowest price, most of the shares currently held by investors remain unchanged. A total of 373 companies participated in the trading on the Dhaka Stock Exchange (DSE) on the first working day of the week. Among them, the share prices of 177 companies were unchanged today. The prices of 81 companies have decreased. On the contrary, the price of 115 shares increased.
The market picture was the same last week as well. A total of 160 companies share prices were unchanged on DSE last September 25. The next day, September 26 shares of 173 companies were unchanged. On September 27, the share prices of 174 companies neither increased nor decreased. Share prices of 186 companies were unchanged in the next two working days. According to market watchers, the lowest prices are the main reason why the share prices of most companies remain unchanged.
Many consider such behavior unusual in the market. Most of the companies whose share prices were unchanged today did not fall due to the lowest price. Normally the number of unconverted shares used to be below one hundred. However, due to the lowest price, the share price of most of the companies has remained unchanged recently.
Share market analyst and former teacher of Dhaka University Professor Abu Ahmed thinks that the share market is suffering due to the lowest price. He said that even if an investor urgently needs money, he is unable to sell shares due to the lowest price. Some may want to sell their shares and sell some other shares. But he is unable to sell his shares due to the lowest price. However, a section of our investors is in favor of keeping the lowest price.
Saidur Rahman of Bangladesh Merchant Bankers Association BMBA declined to comment on the lowest price. But he thinks the lowest price is not a good solution for the stock market.
According to Bangladesh Investors Council President Mizar-ur-Rashid Chowdhury, BSEC will not raise the lowest price until the main index (DSEX’) reaches 10,000 points. He told that due to the provision of the lowest price, investors have regained their peace of mind. The market is now stable. If the lowest price is lifted now, investors will again suffer losses.
Mizan-ur-Rashid Chowdhury said we do not see any negative side to the lowest price. Because I can at least have the comfort of buying shares my share price will at least remain stable even if it doesn’t go up. If the lowest price is lifted, the market will collapse within a week, this representative of the investor council also believes.
The BSEC Executive Director and Spokesperson are looking at some positive aspects of the lowest price. Rezaul Karim. He told that the lowest price has been given to instill confidence in investors. The volume of transactions in the market also increased after the lowest price was issued. Where earlier the average transaction was below a thousand crore takas, it has now crossed a thousand crore takas.
In response to the question of whether the BSEC is thinking of something like this, the commission official said that when the lowest price was given earlier, the shares of many companies were not being sold. But this time the shares are being sold even though the price is unchanged. Therefore, the volume of transactions in the market has also increased. Everyday transactions are more than a thousand crore takas.
When the lowest price was first introduced in the stock market, most companies remained unchanged. As a result, BSEC withdrew the lowest price of 66 companies on April 7, 2021. Two months later, the lowest of another 30 companies stuck at the lowest price was withdrawn. The commission withdrew the lowest from the shares of all companies last year 20. The Securities and Exchange Commission (BSEC) again introduced the lowest price in the stock market on June 30 this year in the face of continuous price decline.
Dhaka Bourse Continues Positive Trend
Dhaka Stock Exchange DSE, Bourse on the third working day of the week, December 5, ended with price Index hikes & turnover drops. This information is known from DSE sources.
460 crore shares were traded on this day. 31 crore 78 lakh less trading was done in DSE today compared to the previous workday, 4 December, Shares worth Tk 491 crores 78 lakh shares were traded last time, Monday.
The benchmark DSEX added 3.16 points or 6,247 The Shariah-based index DSES gained 1.79 points or 1,359, and the blue-chip index DS30 decreased by 0.65 points or 2,113.
Of the issues traded, 60 advanced, 94 declined and 170 remained unchanged.
Capitec Grameen Bank Growth Fund ranked top gainer on DSE, the share price increased by Tk 1.10 paisa or 10.00 percent. On this day, the share was last traded at Tk 12.10 paisa.
GQ Ball Pen Industries Limited ranked top loser on the DSE, the share price dropped by Tk 13.20 paisa or 7.51 percent. On this day, the share was last traded at Tk 162.60 paisa.
DSE topped on trade is Central Pharmaceuticals Limited 25 crore 58 lakh takas of shares of the company have been traded.
A total of 62 companies’ shares were traded in the Block on the Dhaka Stock Exchange, 41 lakh 30 thousand 415 shares of the companies were traded. The financial value of which is 18 crore 12 lakh taka.
Dhaka Bourse Sustains Winning Streak
Dhaka Stock Exchange DSE, Bourse on the second working day of the week, December 4, ended with price Index & turnover hikes. This information is known from DSE sources.
491 crore 78 lakh shares were traded on this day. 142 crore 77 lakh more trading was done in DSE today compared to the previous workday, 30 November, Shares worth Tk 349 crores 1 lakh shares were traded last time, Sunday.
The benchmark DSEX added 12.45 points or 6,244 The Shariah-based index DSES gained 1.92 points or 1,357, and the blue-chip index DS30 increased by 5.69 points or 2,114.
Of the issues traded, 107 advanced, 49 declined and 169 remained unchanged.
Bangladesh Autocars Limited ranked top gainer on DSE, the share price increased by Tk 13.10 paisa or 9.95 percent. On this day, the share was last traded at Tk 144.70 paisa.
Jute Spinners Limited ranked top loser on the DSE, the share price dropped by Tk 13.50 paisa or 4.13 percent. On this day, the share was last traded at Tk 313.10 paisa.
DSE topped on trade is Khulna Printing and Packaging Limited 27 crore 24 lakh takas of shares of the company have been traded.
A total of 54 companies’ shares were traded in the Block on the Dhaka Stock Exchange, 37 lakh 64 thousand 536 shares of the companies were traded. The financial value of which is 28 crore taka.
BSEC Undergoes Major Restructuring
The Bangladesh Securities and Exchange Commission (BSEC) has undergone significant restructuring, bringing about substantial changes in the responsibilities of officials from commissioners to assistant directors. According to BSEC sources, this restructuring involves the reassignment of two commissioners, four executive directors, eight directors, two additional directors, and eight assistant directors to different departments.
As per BSEC, Professor Dr. Sheikh Shamsuddin Ahmed, the Commissioner has been assigned the responsibility of the Division of Issuer Companies Affairs, Corporate Finance, and Financial Literacy Division within the Market and Intermediaries Affairs Division. On the other hand, the Chief Accountant Division’s responsibility has been given to another BSEC Commissioner, M. Abdul Halim.
Additionally, Abdul Halim has been entrusted with the Market Intelligence and Investigation Division and Derivatives Division. Meanwhile, he will also oversee the duties of the Chief Accountant Division. BSEC Chairman Professor Shibli Rubayat-Ul-Islam will directly oversee the Administration and Finance Division and the Commission’s Secretariat Division.
Mohammad Anwarul Islam, the Executive Director of BSEC, has been assigned the responsibilities of the Derivatives and Research and Development Divisions. Simultaneously, he will be responsible for the Investment Management Division. Executive Director Mohammad Rezaul Karim will oversee the responsibilities of the Compliance Division in addition to his existing role in the Legal Division. Executive Director Mohammad Shafiul Azam has been assigned to the Financial Literacy Division. Executive Director Mohammad Jahangir Alam has been given charge of the Market and Intermediaries Affairs Division. Besides, the responsibilities of eight directors, two additional directors and eight assistant directors of BSEC have been redistributed.
BSEC Secretary Division’s responsibilities have been assigned to Director General Muhammad Mahmudul Haque. Director General Pradip Kumar Basak will continue to oversee the responsibilities of the Administration and Finance Division, with additional duties in the Accounts and Finance Department. Director General Mohammad Abul Kalam will manage the responsibilities of the Division of Issuer Companies Affairs, alongside his role as the Chief Accountant of the Division. Director General Md. Mansoor Rahman has been assigned the responsibility of the existing Issuer Company Affairs Division as well as the Market and Intermediaries Affairs Division. Director Mohammad Abul Hasan has been given the responsibility of the Investment Management Division and Derivatives Division.
The Division of Derivatives and the Derivatives Division will be led by Director General Sheikh Mahbubur Rahman. Furthermore, Director General Abu Rayhan Mohammad Mutasim will be in charge of the Internal Audit and Compliance Division, in addition to his role in the Research and Development Division. Director General Mohammad Fakhrul Islam Mojumdar will assume responsibilities for the Corporate Finance Division and the Enforcement Division. Lastly, Director General Mohammad Fakhrul Islam Majumder will head the Corporate Finance Division and the Enforcement Division.
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