Staff Reporter :
Foreign investors in five listed companies and local entrepreneur directors in 10 listed firms have simultaneously reduced their shareholdings in the stock market, according to data from AMAR Stock and the Dhaka Stock Exchange (DSE).
Market analysts attribute the reduction to ongoing economic challenges, continuous declines in share prices, price manipulation, and record-low transaction volumes, which have compelled investors to reduce their stakes.
From 31 October to 30 November 2024, foreign investors divested shares in five companies. The companies are Beximco Pharma (foreign ownership dropped from 27.30 per cent to 27 per cent), First Security Islami Bank (foreign stake declined from 0.96 per cent to 0.86 per cent), IDLC (foreign shareholding decreased from 1.16 per cent to 1.02 per cent), Padma Oil Company (foreign ownership reduced from 0.71 per cent to 0.49 per cent) and Summit Alliance Port (SUPPORT) (foreign shareholding dropped from 4.15 per cent to 3.99 per cent).
Entrepreneurial directors in 10 companies have also reduced their market share. They are Alltex Industries (ownership reduced from 40.73 per cent to 40.42 per cent), CNA Textiles (Stake dropped significantly from 22.14 per cent to 7.10 per cent), Desh Insurance (Shareholding reduced from 60.40 per cent to 58.38 per cent), Karnaphuli Insurance (stake decreased from 32.85 per cent to 32.74 per cent), Midas Finance (ownership dropped from 38.67 per cent to 36.67 per cent), Munnu Agro (stake reduced from 32 per cent to 30 per cent), National Polymer (Shareholding decreased from 34.18 per cent to 33.27 per cent), Prime Insurance (stake reduced from 32.98 per cent to 32.18 per cent), Sharp Industries: Shareholding fell from 36.63 per cent to 30.58 per cent and United Finance (Stake dropped from 54.42 per cent to 40.13 per cent).
The simultaneous reduction in market shares by foreign investors and local entrepreneur directors highlights growing uncertainty in the stock market. Analysts emphasise the need for stabilising measures and collaborative efforts from stakeholders to restore investor confidence and promote market growth.
Md. Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA) told to the New Nation that investors come to the market to get economic benefits but the current market situation has forced them to fall into economic harm which is why they are sold their market shares.
No one wants to put his money in to idle position, the market is unstable and idle now, so investors try to come out from the market, he added.
