The Bangladesh Securities and Exchange Commission (BSEC) today raised the minimum price of all listed companies as it moved to stop its efforts to intervene in the stock price mechanism.
Last April, the floor was raised by 66 companies.
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Analysts, merchants, bankers and asset managers welcomed the decision.
The capital market is about discovering prices where price thresholds have no place in the capital market, said Shahidul Islam, CEO of VIPB Asset Management Company.
“Our market recovery from mid-2020 would be much faster if there was no price threshold,” he said.
“By imposing minimum prices, we have literally scared off many foreign institutional investors from our market,” Islam added.
On March 19, 2020, the stock market regulator imposed the minimum price on all stocks by calculating their average prices from the previous five days to stop the index from falling in the middle of the pandemic.
The decision was criticized by most analysts and foreign investors.
However, the regulator continued with the minimum price for a year, as many general investors feared that the market would fall if the minimum price increased.