The Securities and Exchange Commission on July 22 directed the Dhaka and Chittagong bourses to place five companies under spot trade from July 22 until further instruction. The market watchdog also withdrew financial adjustment facility against trading of B, N and G categories’ securities with effect from July 29.

The commission has directed the bourses to place Power Grid Company Bangladesh, Dhaka Electric Supply Company, Summit Power, BRAC Bank and AB Bank under the spot market which does not enjoy money adjustment facility. The commission issued the directive to safeguard the interest of the retail investors and the capital market as the SEC considered that the price movements of the five companies became risky for small investors. The directive was issued in the backdrop of recent abnormal hike in prices of the shares in the market. The commission will go for tougher measures if the initial measures fail.

The financial adjustment facility withdrawal will be effective from July 29 as it requires brining changes in programme in the automated trading system. Under the financial adjustment or netting facility, investors are allowed to purchase stocks with sale proceeds immediately after completing a sale. Earlier, the SEC placed BRAC Bank, Power Grid Company Bangladesh, Dhaka Electric Supply Company, Summit Power and Eastern Cables under the spot market without money adjustment facility from February 12 to 14 to ease down the volatility in the share prices of the companies.

Meanwhile, turnover at the Dhaka Stock Exchange on July 22 surged to its all-time high at Tk 275.17 crore surpassing its previous high of Tk 239.54 crore on July 17. Chittagong Stock Exchange turnover also hit at Tk 47.83 crore from the Thursday’s Tk 45.03 crore. On Thursday, DSE turnover was Tk 233.64 crore. The DSE general index gained 58.70 points or 2.51 per cent to close at 2398.07, while its blue chips index, DSE20, advanced by 55.89 points or 2.68 per cent to close at 2144.49. The CSE selective categories index gained 94.52 points or 2.49 per cent to close at 3894.93, while its blue chips index, CSE30, advanced by 134.20 points or 2.50 per cent to close at 5499.16. Stock market analysts said the market had been witnessing a bullish trend since late April with active participation of institutional and foreign portfolio investors.