Stocks trading resumes today

Staff Correspondent | Published: 22:22, May 30,2020

 
 

Trading on the country’s stock market resumes today after a 66-day recess amid the coronavirus outbreak in the country.

The Dhaka Stock Exchange on May 28 decided to reopen trading following the Bangladesh Securities and Exchange Commission’s consent and the government’s decision not to extend the general holiday further on the same day.

The bourse also reduced the trading session by one hour as trading will start at 10:30am and continue till 1:30pm. Usually, trading on the country’s stock exchanges begins at 10:30am and ends at 2:30pm.

Share trading on the country’s two stock exchanges — Dhaka Stock Exchange and Chittagong Stock Exchange — went into recess on March 26. Trading on the CSE will also resume today.

The government announced a general holiday beginning from March 29 and extended it in phases till May 30 to combat the spread of the coronavirus outbreak in the country.

Before the suspension of trading, the struggling capital market had been in doldrums over fears of an economic slowdown in the wake of the global COVID-19 pandemic.

The core index of the DSE, DSEX, fell sharply to 3,603.95 points on March 18 and hit a six-and-a-half-year low from 4,734.15 points on February 16 that forced the BSEC to introduce a ‘floor price’ to restrict further falls.

DSEX finished at 4,008.28 points on March 25 riding on the floor price system which, on the other hand, sapped the liquidity on the market.

Former BSEC chairman Faruque Ahmed Siddique told New Age that the price restriction would reduce turnover drastically if it continued day after day.

He said that the restriction could not be a solution for a long period and it should soon be lifted to keep the market in motion.

The new BSEC chairman, Shibli Rubayat Ul Islam, told New Age that the restriction would continue for a few more days until the market showed some positive movements.

The BSEC directed the stock exchanges to ensure compliance with the health ministry’s health and safety directives to be followed during the pandemic, he said.

Following the commission’s consent, the DSE decided to resume trading, settlement and all other official activities today through maintaining the required health, hygiene, social distancing and other protective measures.

The DSE also asked all the brokerage houses to follow the health and safety guidelines of the health ministry.

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