United News of Bangladesh

Bangladesh’s capital market is regaining momentum, attracting major investors amid rising trading activity and a sharp increase in Beneficiary Owner (BO) accounts over the past year, according to the Bangladesh Securities and Exchange Commission (BSEC). While some quarters have suggested that investor participation in the stock market is shrinking, official data tells a different story. Recent BSEC statistics indicate that while small investors are gradually pulling back, the presence of high-net-worth individuals and institutional investors has strengthened significantly. The number of portfolios valued between Tk 50 crore and Tk 500 crore has seen a marked increase compared to June 2024. Similarly, portfolios exceeding Tk 50 lakh have also gone up, pointing to a clear shift in investment patterns toward larger stakes. Retail participation, particularly investments below Tk 1 lakh, has, however, dipped. As of June 30 this year, the number of portfolios below Tk 1 lakh stood at 831,748, down from 916,157 in the same period last year. Rise in Millionaire Investors BSEC data further reveals a steady growth in the number of millionaire investors. Sikder Group issues clarification on freezing of its BO accounts In June 2024, 12993 investors held portfolios valued over Tk 1 crore. That number has now risen to 13316. Although portfolios above Tk 10 crore have declined slightly, portfolios valued over Tk 50 crore have increased. In June last year, there were 696 investors in the Tk 50 crore-plus category; the number has now climbed to 733. The number of investors with holdings over Tk 100 crore has gone up by 22, and portfolios exceeding Tk 500 crore have increased by two. Market insiders say large investors are holding firm, driven by the belief that the market will recover over time. "Unlike small investors who are more vulnerable to market shocks, large investors are committed for the long term. They understand that patience in the capital market pays off," said Asad Mia, Branch Manager at Global Securities in Motijheel. Echoing this, Tarek Hossain, a veteran investor with nearly a decade of experience, noted, "Small investors tend to trade frequently for short-term profits, while big investors invest in fundamentally strong companies and stay invested for years, riding out temporary downturns." Demand for Quality IPOs Despite the ongoing recovery, the market has yet to witness the listing of any major fundamentally strong company over the past year. However, efforts are underway to change that, officials say. Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser said the government is preparing a list of both state-owned and private companies to engage them in discussions about potential market listings. Number of  BO accounts increased  in August "Improving market surveillance is equally important. Strong oversight will deter manipulative activities and help restore investor confidence," he added. Abu Ahmed, Chairman of the Board of Directors at the Investment Corporation of Bangladesh (ICB), stressed the importance of quality listings. “One good company can change the entire market sentiment. We must also consider bringing in multinational firms alongside domestic entities,” he said. BSEC Chairman Khondoker Rashed Maqsood reaffirmed the Commission’s commitment to listing high-quality companies, and emphasised implementing taskforce recommendations to ensure sustainable growth in the capital market.

Bangladesh’s capital market ended the week on a bearish note as it witnessed a decline for the third consecutive day on Thursday. All key indices in both the Dhaka and Chittagong Stock Exchanges fell on the final trading day of the week, while the majority of listed companies experienced a drop in share prices. At the Dhaka Stock Exchange (DSE), the benchmark index DSEX lost 54 points. The Shariah-based index, DSES, declined by 14 points, and the blue-chip index DS30 dropped by 20 points. Among the 395 companies traded, most saw their share prices decline. While 42 companies recorded gains, 317 saw their share prices fall and 36 companies remained unchanged. Trading in DSE, CSE begins with continued fall in indices Shares in all three categories — A, B, and Z — declined. Of the 216 dividend-yielding companies listed in category A, only 19 recorded price increases. In contrast, 182 companies in this category experienced a decrease, and 15 companies remained stable. Most of the 36 mutual funds traded also witnessed a decline in share prices, with 31 funds seeing their prices fall, 2 showing gains and 3 remaining unchanged. In the DSE block market, shares worth Tk 29 crore were traded across 31 companies, with Square Pharma topping the list by offloading shares worth Tk 21 crore. The total turnover at the Dhaka market was Tk 296 crore for the day, slightly higher than the Tk 294 crore recorded on the previous trading day. City Insurance was the top gainer with a 7.38 per cent increase in its share price. Conversely, Premier Leasing and Finance tumbled more than 9.38 per cent to close at the bottom. Decline at Chittagong Stock Exchange Similar downward pressure was observed at the Chittagong Stock Exchange (CSE), where the overall index fell by 137 points during the day. Among the 205 companies traded on the CSE, 37 saw their share prices rise, 151 declined, and 17 remained unchanged. The total turnover on the CSE was Tk 10.29 crore, down from BDT 11.22 crore recorded in the previous session. Samata Leather Complex led the gainers with a 10 per cent increase in share price, while Jamuna Bank suffered a steep fall of over 14 per cent to close at the bottom.  

The month of April brought no respite for investors in Bangladesh’s capital market. Following the Eid holidays, trading resumed with continued decline, dragging the key index of the Dhaka Stock Exchange (DSE) down by 302 points and wiping out Tk 17,000 crore in market capitalisation. According to a review of the month’s trading on the DSE, the benchmark DSEX index, which began April at 5,219 points, ended at 4,917 points. Out of 18 trading sessions in the month, the market witnessed losses on 15 days. The consistent fall discouraged fresh investments, with many investors opting to pull their funds out. Market Wrap: Dhaka stocks gain, Ctg slips on week’s final trading day As a result, the market lost around Tk 17,000 crore in capital. Not just the key index, the Shariah-compliant index DSES also suffered, falling by 74 points over the month. Similarly, blue-chip shares were not spared either, as the DS30 index—comprising selected well-performing companies—dropped by 92 points. Data from Central Depository Bangladesh Limited (CDBL) revealed that 11,429 investors emptied their beneficiary owner (BO) accounts during the month. The number of BO accounts with zero balance has now surpassed 3.8 lakh, while the total number of active accounts dropped by over 10,000. Investors expressed grave concerns over the prolonged downturn. Many believe that the erosion of confidence is making it increasingly difficult for the market to stabilise. Those still holding onto hope are being let down day by day. Tarek Hossain, who has been trading shares for nearly five years, said, “The commission used to say that investing in good companies would not lead to losses. That only those investing in junk shares were getting hurt. But in recent months, the prices of many good stocks have dropped. How can a Tk 100 share fall to Tk 30–40? The commission has failed to answer that.” Another investor, Monsur Ali, noted, “The biggest damage has come from margin loans. Those who bought shares with margin loans were forced into selling their good stocks due to forced sales. This has adversely impacted the overall market.” A member of the capital market reform taskforce, speaking on condition of anonymity, said, “Margin loans have become a thorn in the market’s side. There had been no strong regulations regarding loan issuance or use. Recently, the taskforce submitted new proposals to the commission. It recommended setting a maximum margin loan limit of Tk 10 crore and a minimum of Tk 10 lakh, and not allowing margin loans without active market investments.” The taskforce has also advised that margin loan funds should not be used for locked-in shares, sponsor shares, placement shares, unlisted firms, bonds, debentures, or unlisted mutual funds. Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB), said, “We need to bring large multinational companies into the market. If we can list such firms, investor confidence will return.” But, multiple sources within the Bangladesh Securities and Exchange Commission (BSEC) confirmed that no major initial public offering (IPO) is expected this year. This dims hopes of a near-term turnaround for the market. To add to the woes, insiders say recent internal conflicts within the BSEC and the dismissal of 21 officials have also negatively impacted investor sentiment.