The Dhaka Stock Exchange has cancelled the trade of over four lakh shares of Express Insurance that took place on Thursday.
According to officials, in an unusual instance, 4.30 lakh shares of Express Insurance traded at Tk3 each on Thursday, a steep fall of Tk29.90 each on Wednesday's closing session.
The shares were sold from Fareast Islami Securities Limited's portfolio, which later asked the DSE to cancel the trade, said DSE Chief Operating Office Shaifur Rahman Mazumdar.
Explaining the reasons behind the unusual trade, Md Nazmun Monir, CEO of Fareast Islami Securities, told The Business Standard, "An order was placed to sell the shares of Express Insurance at Tk3 each, instead of Tk30 by mistake. And since there is a free limit due to dividends declaration, the shares were completely sold."
"An application was therefore made to the DSE to cancel the transaction," he added.
Express Insurance on Wednesday announced a 10% cash dividend for its shareholders. According to regulations, there is no limit to the share price of a company concerned on the day after it declares dividends making it possible to trade Express Insurance's shares at 90% less than its price.
At the end of the day, however, Express Insurance shares closed at Tk32.10 each, a 7.36% jump from the previous day.