Mahfuz Emran : After the 12th national election, the stock market is trading in a positive trend. The demand of a large section of the shareholders-withdrawal of the minimum price level or floor price of shares fixed by the regulatory body BSEC. After a year and a half, BSEC is going to take action in that regard.
However, there is still a difference of opinion among the stock market participants regarding the withdrawal of the floor price. One side believes that the stock market will not return to normal until the floor price is withdrawn. But on the other hand, it is better to withdraw the floor price after the index rises by a few hundred points. Otherwise, the interested parties will take advantage of the withdrawal of the floor.
Market analysts say that the large investors who are holding positions with the withdrawal of the floor should not create a negative trend in the market by excessive selling pressure.
BSEC is thinking about withdrawing the floor price in three phases this month. Companies whose share price is currently above the floor price and do not get margin lending facilities will be de-capped in the first phase.
Second, companies that are on the floor; But their share price fluctuations do not have much impact on the index, they will be decided upon. In the last step, the companies that influence the index, such large capitalization companies will be given floor prices.
But most of the common investors are not in favor of withdrawing the floor price now. They say the market should be a little better. Let the index rise by at least another 200-300 points. If the floor price is lifted then there will not be much pressure on the market.
According to them, the transactions seem to indicate that large investors have started to become active in the market. They are in favor of phasing out the floor price if they are more proactive. Otherwise, the interested parties will try to take advantage of the withdrawal of floor price.
However, BSEC Chairman Prof. Shibli Rubaiyat-ul-Islam said, after lifting the floor price, if someone tries to take extra advantage by systematically throwing away the floor price, the floor price will be given again the next day. After that, those who ordered the sale unreasonably will be found out and action will be taken. There is no exemption in this regard.
President of DSE Brokers Association (DBA) Saiful Islam said, “Normal activities of the market, transactions should be allowed. All we have to say is let the market operate in its normal course. Exchanges and regulatory bodies are there if someone tries to unethically take advantage of the floor withdrawal. When necessary, they will do it.
Meanwhile, stock market analysts have suggested withdrawing the floor price by keeping large interests intact through negotiations to avoid a split. Professor Al-Amin, associate professor of the Department of Accountancy of Dhaka University and stock market analyst, said that only when the floor price is withdrawn will buyers come or will it fall – these two ideas are not entirely correct. If the floor is withdrawn, it should be ensured through discussion that no confidence is created in the market by additional selling pressure.
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