BSEC lowers circuit breaker to 2%
Due to the current downfall of the stock market the Bangladesh Securities and Exchange Commission (BSEC) has cut the lower circuit breaker at 2%.
This circuit breaker will be effective from Wednesday (9 March).
Circuit breakers are temporary measures that halt trading to curb panic-selling on stock exchanges.
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Previously the lower circuit breaker was at 10% but with the Russian invasion of Ukraine, the share market has become unstable.
Since the war began the Dhaka Stock Exchange index (DSEX) has dropped 500 points.
The BSEC has directed to invest Tk100 crore into the stock market from the Stabilization Fund through the Investment Corporation of Bangladesh (ICB). This will be effective from Tuesday (8 March).
BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said that due to rumours and commodity price hike in the global market there has been a downfall in the stock market as well.
Panicked by this investors are selling off shares. The circuit breaker was lowered so that the investors do not incur huge losses, he added.
