Bourses suspend five banks' share trading
The trading suspension will remain in place until further notice
A day after the central bank dissolved the boards of five Islamic banks and appointed administrators ahead of their merger, both the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) suspended trading of their shares on Thursday (6 November).
The trading suspension will remain in place until further notice, as the stock exchanges have circulated it on their websites.
Before trading began on Thursday, the Bangladesh Securities and Exchange Commission (BSEC) directed both stock exchanges to suspend trading of shares in five banks – Exim Bank, Social Islami Bank, Union Bank, Global Islami Bank, and First Security Islami Bank.
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According to DSE data, Exim Bank's paid-up capital was Tk1,448 crore, and on Wednesday, Exim Bank's shares closed at Tk3 each, with a market capitalisation of Tk434 crore.
While the paid-up capital of First Security Islami Bank was Tk1,208 crore, the share price was Tk1.90 and the market capitalisation was Tk229 crore.
Global Islami Bank's share price was Tk1.70 each, and market capitalisation was Tk168 crore. SIBL's share price was Tk3 each, and market capitalisation was Tk342 crore, and Union Bank's share price was Tk1.50 and market cap was Tk155 crore.
On Wednesday, the central bank informed the BSEC in a letter of the resolution of five banks. In a press conference, BB Governor Ahsan H Mansur stated that the five newly-appointed administrators will review the assets and liabilities before completing the full merger process, which is expected to take about one to two years.
Despite the turmoil, the central bank assured the public that depositors are safe and urged against panic withdrawal.
