Stocks leap 10 percent

Under the new emergency circuit breaker system, price of no securities will be allowed to hit below its last 5 days’ average

Dhaka stocks jumped 10 percent today after regulator’s announcement to set floor prices for securities much higher than the previous ones.

The session lasted for only 30 minutes instead of regular four hours. Yet, DSEX, the main index of the Dhaka Stock Exchange rose 371 points or over 10 percent.

From today opening price of each security will be set at the average closing prices of the preceding five sessions of March 19, 2020, Bangladesh Securities and Exchange Commission (BSEC) said in a circular.

The opening adjusted price will also be treated as the floor price for the day’s circuit breaker.

The higher side of the circuit breaker will be determined in traditional way – up to 10 percent high from the opening base price.

The exchanges took some time to implement the mechanism in their automated trading platform.

Dhaka Stock Exchange opened their floor for electronic trading at 2.00 pm and closed it at 2.30 pm.

By this half an hour each of the stock indices were up more than 10 percent, which had lost around 20 percent this month alone until yesterday.