The number of beneficiary owners’ accounts increased by 42,800 in October-December of the just-concluded year 2017 mainly due to a positive momentum at the country’s bourses.
An abnormal rise in the share prices of all the newly listed companies in the first few days after their debut on the stock exchanges also lured people to open BO accounts for gaining quick profits from the market, market operators said.
The number of BO accounts rose to 27,27,400 as on December 31 from 26, 84,594 as on September 30.
Of the new entries, the number of BO accounts owned by female investors was 11,580.
The key index of Dhaka Stock Exchange, DSEX, added almost 210 points in the October-December period of last year.
The DSEX, which was at 6,092 points on September 28, reached 6,244.52 points on December 28, the last trading session in 2017.
The market was stable during the whole year and bank deposit rate continuously declined that prompted investors to invest in the capital market, stockbrokers said.
The increase in the number of BO accounts came after around 2.64 lakh BO accounts were closed in July for non-renewal of the accounts by the June, 2017 timeframe.
Opening a BO account with the Central Depository Bangladesh Limited through a depository participant, which is usually a stockbroker or a merchant bank, is a must for trading shares at the DSE and the Chittagong Stock Exchange.
Of the active 27,27,400 BO accounts, 19,92,437 are owned by male investors and 7,23,125 by female investors. The figures were 19,61,569 and 7,11,546 respectively on September 28.
Individual investors operate 17,25,829 BO accounts, investors jointly operate 9,89,883 BO accounts and 11,798 accounts are operated by different companies including institutional investors, the CDBL data showed.
Of the accounts (excluding the company-owned BO accounts), 25,59,795 BO accounts are owned by Bangladeshi investors and 1,55,917 accounts owned by non-resident Bangladeshi investors, the data showed.
Market operators said investors usually open new BO accounts or revive their suspended BO accounts when they find the primary (initial public offering) market vibrant and the secondary market bullish.
Although the IPO market was dull in the year 2017 following the amendment of the public issue rules, investors opened new BO accounts hoping that they would earn some quick profits as the share prices of the debutant companies were seen shooting up from their debut day.
Among the companies, Oimex, Nahee Aluminum and BBS Cables rocketed by 1,040 per cent, 810 per cent and 800 per cent respectively on their debut day.
The confidence of the investors started to rise from the month of July when the market started to
recover its early losses and continuously surged without any major fall, market operators said.
Currently, an investor has to pay Tk 450 per annum to keep his/her BO account active.
The number of BO accounts reached its peak at around 34 lakh in the fiscal year 2010-11, the year of market bubble-burst, as people, lured by the booming share prices, then had rushed to open accounts with different brokerage houses.
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