Economic Reporter :
Dhaka stocks have jumped as much as 10 percent after a four-day losing streak as the regulator issued new rules to control price swings on both bourses.
The opening price of any listed security on the Dhaka Stock Exchange and the Chittagong bourse have been set at the average of closing prices of the preceding five days.
If prices go below the five-day average, it will automatically trigger a circuit breaker for an individual stock
Trade started on two bourses at 2:00pm, instead of 10:30 am, for 30 minutes.
Meanwhile, the DSE and CSE have delayed the start of trading further amid colossal market losses.
In separate notices on Thursday, both bourses said they will now open trading at 1pm, citing unavoidable circumstances.
“All concerned are hereby informed that due to unavoidable circumstances, Thursday’s (March 19, 2020) trading starting time of DSE has been rescheduled at 1:00 PM instead of 11:30 AM,” the Dhaka bourse said.
The Dhaka bourse’s key index fell 4.47% on Wednesday to its lowest level since May 2013. The index continued losses for the fourth day.
“Trade will be held from 1pm to 3pm, according to Saifur Rahman, spokesman for Bangladesh Securities and Exchange Commission.
“We are making changes to the circuit breaker rules. We’re working on a directive and hence the delay,” Rahman told.
Index jumps 371 points
Country’s premier bourse, Dhaka Stock Exchange (DSE) bounced back on Thursday buoyed by emergency crisis response effort from capital market regulator.
The broad index, DSEX closed at 3974.96 points on Thursday, last working day of week, with a sharp jump of 371.01 points or 10.29 percent in a 30 minutes trading session due to circuit breaker system.
Besides, two selective indices, Blue Chip index, DSE30 and Shariah index, DSES also went up by 122.37 points and 84.65 points to settle at 1325.81 points and 919.43 points respectively.
At DSE, trading started at 2:00pm, a three hours delay, and continued until 2:30pm due to setting emergency circuit breaks on stocks by Bangladesh Securities and Exchange Commission (BSEC).
According to new circuit breaker, opening price of any listed security will be set at the average of the closing price of immediately preceding five trading days of March 19, 2020.
This average price calculated for each security would be considered as the floor price and the lowest limit of the circuit breaker.
Upper limit of the circuit breaker and other conditions will remain unchanged. This order effected from Thursday and will remain in force until further order, according to a BSEC circular.
Market turnover, another crucial indicator, stood at Taka 4.91 billion, which was higher over previous day’s mark of Taka 4.29 billion.
On the DSE trading floor, a total number of 6,372 trades were executed in Thursday’s trading session with a trading volume of 125.49 million securities.
Gainers took a strong lead over gainers as out of 352 issues traded, 141 securities gained price while 49 declined and 152 remained unchanged.
