Nearly 49,000 BO accounts emptied in six months

Over the past six months, a staggering 49,000 beneficiary owners' (BO) accounts were emptied by 20 February, reflecting growing investor frustration over prolonged poor returns and prompting many to exit the stock market.

Market insiders attribute this exodus to rising concerns over substantial losses amid a prolonged downturn.

According to data from the Central Depository Bangladesh Limited (CDBL), which manages BO accounts and shares, the number of BO accounts with zero share balance stood at 3.10 lakh on 6 August last year. By 20 February 2025, this figure had surged to 3.59 lakh, reflecting a sharp increase in investor disengagement.

Out of the total 16.86 lakh BO accounts registered with the CDBL, 21% are now inactive, underscoring the extent of the selloff. 

The number of BO accounts holding shares dropped by 36,056 to 12.59 lakh, further signalling a loss of confidence among investors.

Following the fall of the Awami League government, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) initially surged by 786 points, reaching 6,015 within just four days. This rally was fueled by optimism that a new administration would address economic uncertainties linked to corruption, misinformation, and misgovernance.

However, investor confidence has since eroded as government and regulatory reforms have remained unclear or failed to reassure market participants. Decisions made without consulting market intermediaries have further deepened distrust, exacerbating the decline in market sentiment, according to insiders.

The DSEX has experienced a sharp decline, closing at 5,200 points on Thursday.

This downward trend reflects the growing disconnect between investor expectations and the lack of concrete measures to stabilise and revitalise the market, said the market insiders.