STAR BUSINESS REPORT

Shares of Beximco Ltd and Islami Bank fell the most among all listed firms on the first trading day after the stock regulator lifted a nearly four-year-old floor price restriction on the two companies.

Dhaka Stock Exchange data show that Beximco shares dropped 9.99 percent and Islami Bank’s shares fell 9.81 percent -- just below the daily 10 percent limit set by the circuit breaker, a standard market mechanism that caps how much a share price can move in a single session.

The Bangladesh Securities and Exchange Commission (BSEC) issued an order on Monday, lifting the restrictions on the firms from yesterday, “in the interest of investors” and for the “development of the securities market”.

The regulatory decision follows newly appointed BSEC Chairman Masud Khan’s public opposition to the mechanism.

At his first press briefing, held on the day of his appointment last week, Khan said the regulator would not impose floor prices under any circumstances in the future.

The floor price was first introduced in March 2020 to curb volatility during the Covid-19 pandemic and expanded in July 2022 to shield the market from economic shocks stemming from the Russia-Ukraine war. Although the commission at the time said it was a short-term measure, the restriction remained in place for around four years.

The mechanism was widely criticised by foreign and institutional investors.