The capital market regulator has allowed 66 companies to trade their shares without the barriers of the floor price system from 8 April to protect the interest of investors as they could not buy or sell these shares.
The Bangladesh Securities and Exchange Commission (BSEC) took the decision at a meeting on 7 April.
Abu Ahmed, an honorary professor of economics at the University of Dhaka, said, "It's a good decision. I am always opposed to the floor price system because it is not a good solution to protect the interest of investors."
The 66 companies include People's 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 and Saiham Cotton.
The rest of the companies are 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 ML Dyeing.
Sources at the BSEC said at present about 110 companies' share prices have been stuck at the floor price or the lowest price level for a long time.
These shares have not been traded for a long time due to being stuck on the floor price. That is why the commission has decided to withdraw the floor price of 66 companies, they added.
Earlier on 19 March last year, the stock market regulator imposed the floor price to curb the abnormal price fall due to the coronavirus pandemic.
As per the BSEC directive, the opening price of the listed securities has set at the average of the closing price of immediately preceding five trading days of March 19 last year, and this average price calculated for each security was considered as floor price and the lowest limit of the circuit breaker.
Initially, most of the stocks were not getting buyers. But the floor price turned into an almost forgotten issue since mid-2020 as the market had strongly bounced back riding on a strong macro economy, low-interest rate, and increased confidence in the market regulator.