Many investors are turning away from the stock market due to the continuous fall in prices. Many are selling their shares in a hurry. As a result, the stock market is facing decline almost every day.
Speaking to top executives of various brokerage houses and merchant banks, it is learned that investors have withdrawn their money at a significant rate in the last few months. As a result, many active investors have become inactive.
According to Central Depository Bangladesh Limited (CDBL), an organization that automatically maintains shares and BO (Beneficiary Owners) in the stock market, about 45,000 investors sold their BO shares in just six working days from December 15 to 23. As a result, the number of shareless BO accounts in the stock market has increased.
According to the CDBL, the number of BO accounts without shares in the stock market at the end of the transaction on December 15 was 4 lakh 24 thousand 133. Last Thursday, the number of shareless BO accounts increased to 4 lakh 69 thousand 263. As a result, the number of shareless BO accounts has increased to 45,140 in just six working days. In other words, in six working days, 45,000 BO shares have been sold in the market. As a result, these accounts have become shareless.
According to another CDBL report, the number of BO accounts held at the end of the transaction on December 15 was 14 lakh 91 thousand 365. At the end of the day on December 23 that number has decreased to 14 lakh 46 thousand 32.
In other words, the number of BO accounts without shares has decreased with the increase in the number of BO accounts without shares. Not having shares as a BO at the end of the day means that the BO account or the investor is inactive in the market. Either they have completely withdrawn their investment from the market or they have temporarily emptied the BO account.
Companies involved in the stock market have expressed concern over whether those who have left the market will return to the market at all. A portion of the investors who invested in the loan repaid the loan by selling the shares. Concerned parties fear that most of them have turned their backs on the stock market.
At the end of trading on Sunday (December 26), the DSE’s main index, the DSEX, was down 72 points, or 1.06 percent, at 6,629 points. This is the lowest in more than four months. Earlier, on August 11 this year, the index stood at 6,623 points.
Among the other two indices, the DS-30 index lost 23 points and the DSE Shariah index lost 14 points.
Of the companies traded at the end of the working day, 48 rose, 300 declined and 31 remained unchanged. Meanwhile, shares worth Tk 75.61 crore were traded on the DSE today (December 28).