Four leasing firms’ shares dip below Tk1, DSE reduces tick size to Tk0.01
The DSE recently introduced a new tick-size rule for securities trading below Tk1, effective 29 October 2025, to address trading inefficiencies
Shares of four listed non-bank financial institutions (NBFIs) are now trading below Tk1 on the Dhaka Stock Exchange (DSE), reflecting deepening investor caution in the capital market.
The affected companies are Peoples Leasing and Financial Services Ltd, Premier Leasing & Finance, International Leasing & Financial Services, and Fareast Finance & Investment Ltd. Yesterday, shares of Premier Leasing and International Leasing were traded at Tk0.90. People's Leasing had already fallen to Tk0.90 on 21 October and Fareast Finance on 26 October.
The DSE recently introduced a new tick-size rule for securities trading below Tk1, effective 29 October 2025, to address trading inefficiencies.
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Tick size is the minimum price movement allowed for a security. Previously, shares could only move in increments of Tk0.10, which restricted price adjustments for low-value stocks.
Under the new policy, shares below Tk1 can move in Tk0.01 increments, allowing finer price adjustments, smoother trading, and more realistic price formation. The adjustment aims to prevent stagnation caused by circuit breaker rules and improve liquidity for low-priced securities.
The new rule is being implemented under Regulation 18 of the DSE Automated Trading Regulations, 1999.
Recent DSE data show that 104 listed companies and mutual funds are trading below their Tk10 face value, including 70 companies from banking, insurance, non-bank finance, textiles, food, services, and engineering sectors, and 34 mutual funds. Alarmingly, 55 companies are trading below Tk5, signalling eroding investor confidence.
Market observers attribute the prolonged downturn to political uncertainty, economic slowdown, liquidity shortages, and weak institutional participation. Investors are also wary of regulatory reforms and the safety of their investments. Analysts warn that the persistent pessimism is keeping new investors away while prompting existing shareholders to exit, prolonging low trading activity and depressed stock prices.
Exchange officials said the tick-size reform, though technical, is expected to enhance trading flexibility for low-priced shares, facilitate price discovery, and gradually restore confidence in low-cap stocks.
