FE REPORT
The Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange will re-launch the pre-opening session today (Sunday) after a pause for more than four months.
The duration of the pre-opening session has been cut down to five minutes from 15 minutes earlier, according to a decision of Bangladesh Securities and Exchange Commission (BSEC). Both the stock exchanges were notified of the decision through a letter on Thursday.
However, the 10-minute post-closing session remains unchanged.
Investors will be able to place buy and sell orders of shares five minutes before the final trading start on the stock exchanges.
With the resumption of the pre-opening session, investors will be able to place buy-sell orders from 9:25am to 9:30am before the usual trading hours begin.
DSE officials said the pre-opening session would help reduce the load on the trading system in the opening moments as the match-making engine would have to accomplish a lot of tasks before the execution moments.
In October 2020, the BSEC introduced a 15-minute pre-opening session and a 10-minute post-closing session on the bourses to reduce the load on the trading system in the opening minutes.
However, the stock market regulator temporarily suspended the pre-opening session on May 20 this year, citing misuse of the opportunity by some brokerage firms. But the 10-minute post-closing session remained in place.
There were allegations that several brokerage firms placed unrealistic buy-sell orders using the pre-opening session facility. Panic was created in the market by the buy-sell order of a large amount of shares with the highest price limit of the circuit breaker.
This had a negative impact on the stock market at the beginning of the transactions. The commission also warned several investors and brokerage firms at that time.
Prof Dr Sheikh Shamsuddin Ahmed, a BSEC commissioner, said as the trading volume is increasing in recent times, the commission reintroduced the pre-opening session.
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