DSEX jumps 1.56% due to floor price adjustment

TBS Report

July 31, 2022, 11:30 a.m.

Last modification: July 31, 2022, 11:52 a.m.

When the bonds are traded on the stock market, it will open the door to widespread participation. Photo: TBS

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When the bonds are traded on the stock market, it will open the door to widespread participation. Photo: TBS

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), jumped 1.56% or 93 points to 6,073 in the first hour of trading on Sunday following the price floor adjustment, set by the securities regulator to curb a further fall.

On Thursday, the Bangladesh Securities and Exchange Commission (BSEC) reintroduced price floors for individual stocks to prevent the market from falling further as the key index hit a 14-month low at 5,980.

The average closing price for Thursday and its previous four sessions would be the floor price for individual certificates, the commission said in the afternoon. This means that no scrip can be traded below the floor price.

According to market insiders, some 346 scripts reported a rise today following the price floor adjustment, which helped push the index higher.

However, the daily turnover at the DSE is still low due to the absence of buyers.

Meanwhile, the Chittagong Stock Exchange’s CASPI all-stock index also jumped 225 points in the first hour of trading.

Eleanor C. William