DSE brokers urge BSEC to lift floor price on Beximco, Islami Bank
Beximco’s shares remain stuck at Tk110.10 each, while Islami Bank’s shares closed at Tk33 each today
The DSE Brokers Association of Bangladesh has urged the Bangladesh Securities and Exchange Commission (BSEC) to withdraw the floor price on Beximco Ltd and Islami Bank Bangladesh and allow normal trading of the stocks.
In a letter sent to the capital market regulator yesterday (3 May), the association of brokerage houses requested the immediate withdrawal of the floor price for the two companies.
The letter said that due to the floor price imposed by the commission, Beximco Ltd has remained largely inactive in the stock market for a prolonged period.
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Similarly, other floor-priced stocks, including Islami Bank Bangladesh PLC, have hit the floor price, restricting trading for sellers.
It added that continued trading restrictions are pushing many shareholders into negative equity, particularly those who have taken margin loans from market intermediaries.
The association also said the imposition of floor prices on these stocks has created a negative perception of the country's capital market among international investors.
The floor price mechanism was introduced in July 2022 to prevent excessive market declines amid the beginning of Russia-Ukraine war.
Later, in December 2022, the commission set downward price change limit (circuit breaker) for 169 companies shall be 1% based on the reference price/previous day's closing price.
In March 2023, the commission reinstated the floor price from 169 stocks.
The regulator lifted floor prices in phases, with the final round in August 2024, leaving only Beximco and Islami Bank under the restriction.
In August 2024, the BSEC removed the floor price from four stocks – Shahjibazar Power, Khulna Power, Meghna Petroleum, and BSRM Limited.
Today, Beximco Ltd's shares trading price was Tk110.10 each, the price stuck at the level for years.
Lastly, the price of Beximco adjusted in November 2024 following adjustments for the company's recent stock dividend.
According to DSE sources, Beximco Limited recently recommended a 5% stock dividend for its shareholders for the fiscal year 2024, with the record date fixed for 25 November.
Islami Bank's shares closed at Tk33 each today.
