BM Desk:

The Bangladesh Securities and Exchange Commission (BSEC) has lifted the floor price on 23 additional companies, bringing the total under the restriction down to just 12. This marks a significant step towards restoring normalcy in the country’s capital market after months of limited trading.

Effective from Tuesday, companies like Anwar Galvanizing, BATBC, Beximco, BSRM Limited, Grameenphone, Islami Bank, KPCL, Meghna Petroleum, Orion Pharma, Padma Oil, Renata, Robi, and Shahjeebazar Power will see their previously locked share prices fluctuate based on market forces.

While these remaining companies will operate under circuit breaker and daily price change limitations, the majority of the market is now free to trade as usual.

This decision comes just four days after the BSEC initially removed the floor price for all but 35 companies. The floor price, aimed at curbing drastic market falls during global uncertainties, had been in place since July 2022, impacting trading volume and causing frustration among investors and financial institutions.

“Due to the floor price, the trading of shares in the market is completely reduced,” the news report highlights. “As the floor price has been maintained for a long time, investors as well as broker houses, merchant banks and asset management companies are also in crisis.”

With the majority of companies now free to trade, the hope is that normalcy will return to the Bangladesh stock market, boosting investor confidence and encouraging wider participation.

While uncertainty surrounding the remaining 12 companies under floor price restrictions remains, this latest move by the BSEC is a positive step towards a more dynamic and responsive financial environment.