Beximco shares trade above floor price in block market

Shares of Beximco Ltd, stuck at the floor price in Dhaka’s main stock market since December, have changed hands at a slightly higher rate in block market trading after news of a Japanese lease deal.

Block market trades took place at Tk 99.40 per share on Monday, above the set floor price of Tk 99.10, according to the Dhaka Stock Exchange (DSE).

The stock’s main market price remains Tk 110.10, with no trades recorded at that level.

The floor price mechanism was introduced during the COVID-19 pandemic to stem a market slide and has since been lifted for most companies, though it remains for a few, including Beximco.

The group’s industrial units have shut down due to financial strain, but its listed entities remain in production.

The revival hopes came after Japanese apparel firm Revival Project Ltd agreed, under government mediation, to lease and operate Beximco’s textile and apparel division (Bextex) with a Tk 2.5 billion investment. The group has provided a “comfort letter” for the deal, according to the labour secretary.

Following the announcement, 5,034 shares worth Tk 500,000 traded in the block market. BSEC rules cap block market trades at up to 10 percent below the main market price.

Meanwhile, the DSE index fell for a fifth straight session, losing 6.98 points to close at 5,344. Turnover dropped to Tk 6.11 billion from Tk 7.61 billion the previous day. Pharmaceuticals and chemicals led the day’s trading at Tk 913.9 million, followed by banks and textiles.