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The stock market opened lower on Monday as BAT Bangladesh, the second largest market-cap share plunged 7.50 per cent after withdrawal of the floor price within the first hour of trading.
After remaining at Tk 518.7 for more than 18 months, BAT Bangladesh is free from the lowest price restriction as per the directive of the Bangladesh Securities and Exchange Commission (BSEC).
The floor price is the lowest price set by the securities regulator at which a stock can be traded. The BSEC in January lifted the floor price of most stocks 18 months after introducing it.
Following the floor price removal, BAT Bangladesh took a hit as its stock price plunged 7.50 per cent or Tk 38.9 each to Tk 479.8 after the first hour of trading at 11:00 am.
Market operators said as BAT Bangladesh is the second largest market-cap stocks, its price fall impacted the overall index.
Grameenphone (GP), the largest stock at the Dhaka bourse, fell for two consecutive sessions after removing the floor price. Its stock dropped 1.72 per cent to Tk 257.10 after the first hour of trading. On Sunday, its stock slid 8.72 per cent.
Accordingly, the key index of the prime bourse went down by 28 points to 6,287 after the first hour of trading at 11:00 am, when the report was filed.
Turnover also stood at Tk 2.70 billion after the first hour of trading.
Of the issues traded till then, 146 advanced, 159 declined, and 68 remained unchanged on the DSE trading floor.
Central Pharma was the most-traded stock till then, with shares worth Tk 194 million changing, followed by Fu-Wang Ceramic, Fu-Wang Food, and GP.
The Chittagong Stock Exchange (CSE) opened lower with the CSE All Share Price Index – CASPI – losing 99 points to 17,741 at 11:00 am.
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