Share prices of four re-listed firms, which started trading on the bourses' main market on Sunday, hit the upper limit circuit breaker on first day of trading.
The companies are Bangladesh Monospool Paper Manufacturing Company, Paper Processing and Packaging, Tamijuddin Textile Mills and Monno Fabrics.
The companies started trading on the main market of Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) from Sunday after being degraded in the over-the-counter (OTC) market since 2009.
The shares of the companies, which were de-listed from the main market or non-compliant, are traded on the OTC market.
Bangladesh Monospool Paper Manufacturing Company's price closed at Tk 55 each on Sunday, after hitting the upper limit circuit breaker with 10 per cent rise. The company was listed on the DSE in 1989.
Each of Paper Processing and Packaging's share closed at Tk 17.60 on Sunday, rising 10 per cent. It was listed on the DSE in 1990.
Tamijuddin Textile Mills' share closed at Tk 13.20 on Sunday, after hitting the upper limit circuit breaker with 10 per cent gain. The textile company was listed on the DSE in 1992.
Share of the Monno Fabrics also jumped 10 per cent, hitting the upper limit circuit breaker, to close at Tk 11 each on Sunday. It was listed on DSE in 1996.
However, only one or two trades were executed of each company's shares on the DSE main market on the first trading day.
The companies started trading primarily in the "Z" category and the status would continue until their next annual general meetings (AGMs) and there after the categorization will be determined as per relevant provisions.
Recently, the bourses have approved the re-listing of shares of these companies from OTC market to the main market.
Earlier on February 4 of this year, the Bangladesh Securities and Exchange Commission allowed these OTC market companies to return to the bourses' main market.
The BSEC said the regulator made the decision following applications from the companies and they improved their business condition.
The OTC means the facilities provided by an exchange for the purpose of buying or selling of unlisted or delisted securities from the stock exchanges.
The BSEC formally launched the OTC market on September 06, 2009 in an effort to facilitate the trading of de-listed companies. Currently, 61 companies are listed on the OTC market.
The OTC market is meant for those companies that are not in operation or failed to hold AGMs or declare dividends or did not convert their paper shares into electronic ones.
The total market capitalisation of the OTC market stood at Tk 6.87 billion as of Sunday, while total number of shares in the OTC market is 1.21 billion.
Last year, Sonali Paper and Board Mills backed to the bourses' main market from the OTC market.
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