Almost all the peer stock exchanges across the world have their additional sub-sessions like pre-opening, post-closing to offer convenience
The Dhaka Stock Exchange (DSE) is set to introduce opening sessions, closing sessions and post-closing sessions from tomorrow with the view to creating the scope of determining justified opening and closing price of the listed companies.
The pre-opening and opening session of DSE will be from 9:45 am to 10 am.
Investors can only buy or sell shares in this session, where an ideal opening price can be determined in this session. The price determined by the highest number of investors will be the opening price of the shares.
Meanwhile, the closing and post-closing sessions will begin at 2.30 pm after the end of normal transactions. Its duration will be 10 minutes.
At this time, investors will not be able to offer a new share price. They will only get the opportunity to buy or sell shares at the closing price. The session will end at 2:40 pm.
On October 20, the Bangladesh Securities and Exchange Commission (BSEC) gave its approval to introduce the different sessions in a bid to emulate the practice of other countries' bourses where investors get the scope to purchase or sell securities at the closing price even after closure of the session.
An orientation workshop was held on November 3 to get the representatives of different TREC (trading right entitlement certificate) holders and merchant banks familiarised with the new system.
Chittagong Stock Exchange (CSE), the second bourse of the country, has been running both the pre-opening and post-closing sessions for the last two decades.
At the CSE, pre-opening is a 20-minute session while its Close Price Trading Session is a five-minute session.
Both the bourses calculate the closing price based on the average price of trades executed over the last 30 minutes of the session. If there is no trade of specific scrip over half an hour, the bourses take the average price of some latest trades as the closing price.
However, the circuit breaker -- the allowable limit for a price to move -- will be based on the closing price at the DSE instead of the new opening price.
Almost all the peer stock exchanges across the world have their additional sub-sessions like pre-opening, post-closing to offer convenience and uphold dynamism in the bourses. Their core trading session also lasts longer than that in Bangladesh bourses -- 10 am to 2.30 pm.