Buoyant market encourages removal of floor from 23 more securities

The securities regulator has lifted the floor price of 23 more companies, encouraged by market recovery in the second trading session without the price restriction.
The stock market saw a significant increase in investor participation driving the turnover up to six-month high to Tk 10.42 billion on Monday. That boosted optimism about the equity market.
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday withdrew the floor price of all securities, except for 35 large-cap companies that can cause a significant impact on the movement of the broad index because of their notable free float shares.
Having seen positive signs in the market, the regulator issued a directive on Monday removing the floor price of Baraka Power, Bangladesh Submarine Cable Company, BSRM Steel, Confidence Cement, DBH Finance, Doreen Power Generations and Systems, Envoy Textiles, HR Textile, IDLC Finance, Index Agro Industries, KDS Accessories, Kattali Textile, Malek Spinning Mills, National Housing Finance, National Polymer, Padma Oil, Saiham Cotton Mills, Shasha Denims, Sonali Paper & Board Mills, Shinepukur Ceramics, Summit Power, and United Power Generation & Distribution Company.
The broad index of the Dhaka bourse lost 214 points within five minutes after the opening of the Sunday's session, owing to the withdrawal of floor price.
The market, however, recovered the initial loss to a great extent with the help of supportive measures and finally closed 96 points down on Sunday from the day before.
In the Sunday's session, investor participation was thin as most investors waited on the sideline to observe the situation.
In the second session on Monday, the Dhaka exchange experienced robust investor participation. The DSEX also exhibited a steady movement until the closure.
Mohammad Rezaul Karim, a BSEC spokesperson, said the regulator had decided to lift the floor price of 35 companies gradually examining the market trend. "It saw no sell pressure, and investors, who were on the sideline with funds, participated in the market on Monday."
The directive was issued considering the improved situation, added Mr Karim.
The 12 companies that still endure the price restriction are British American Tobacco Bangladesh, BEXIMCO, Bangladesh Steel Re-Rolling Mills, Grameenphone, Islami Bank Bangladesh, Khulna Power Company, Meghna Petroleum, Orion Pharmaceuticals, Renata, Robi Axiata, Anwar Galvanizing, and Shahjibazar Power Company.
The subsequent market situation will dictate the authorities' next step -- a full withdrawal of the restriction, said Mr Karim.

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