In a significant development, the shares of Square Pharmaceuticals PLC have finally broken free from months of stagnation, bringing relief to buy-and-hold investors. After being stuck at the floor price of Tk209.8 apiece for over seven months, the stock witnessed a surge in buying interest, pushing its price up to Tk211.90. However, desperate investors looking for an exit brought the price down to Tk210.4 at the closing bell.
Square Pharmaceuticals, the fifth largest listed company in Bangladesh by market capitalization, made a noteworthy contribution of 3.8% to the total turnover at the Dhaka Stock Exchange (DSE) on that day. The company reported earnings per share of Tk16.82 for the first nine months of the last fiscal year, surpassing the Tk16.3 EPS from the previous year. The net asset value per share stood at Tk116.7 as of 30 March.
This development is seen as a positive sign, as the securities regulator imposed the floor price on individual stocks in July last year, limiting opportunities for investors to exit. With smaller cap stocks gradually emerging from the floor, stockbrokers eagerly await the removal of the floor price on large-cap stocks, which constitute a major portion of the DSE market capitalization.
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