Muhammd Ayub Ali :
Investor confidence in Bangladesh’s stock market continues to decline amid a sustained recession, with most listed companies experiencing falling share prices and disappointing returns.
This ongoing slump has left many investors disillusioned, as reflected in the rising number of shareless Beneficiary Owner (BO) accounts.
Since January 2025, 45,369 BO accounts have become shareless-meaning these accounts no longer hold any shares. Data from the Central Depository Bangladesh Limited (CDBL) shows the number of shareless BO accounts rose from 344,427 on 1 January to 389,796 by 4 June.
Concurrently, the number of active shareholding BO accounts fell by 40,381, dropping from 1,271,499 to 1,231,168. This trend highlights growing investor disinterest and mistrust in the current market climate.
Despite the downturn, the total number of BO accounts has marginally increased-from 1,665,134 to 1,667,897-indicating that new investors are opening accounts but remain hesitant to purchase shares, likely due to prevailing market uncertainty and weak performance.
The demographic breakdown of new account holders reveals a persistent gender disparity: accounts held by men rose by 6,507, whereas those held by women increased by just 256. Meanwhile, the number of accounts owned by expatriate investors declined by 305, reducing the total to 46,386.
Over the same period, the Dhaka Stock Exchange’s benchmark DSEX index fell sharply, dropping from 5,218 points in January to 4,709 in early June-a loss of 509 points. Daily turnover fluctuated significantly, ranging from a peak of Tk 6.07 billion to a low of Tk 2.24 billion.
Market analysts attribute the prolonged downturn to several factors, including continued share price declines, weakening corporate earnings, and broader economic pressures. These conditions have heightened investor anxiety, prompting many to liquidate holdings to minimise further losses.
However, cautious optimism has emerged following the government’s recently announced budget proposals for the upcoming fiscal year.
The package includes several capital market-friendly incentives aimed at restoring investor confidence and stabilising the market.
Key measures include broadening the corporate tax gap to encourage new company listings, reducing advance income tax on securities trading, and lowering tax rates for merchant banks.
Experts suggest these targeted initiatives indicate a sincere commitment to supporting the capital market. If implemented effectively, they could attract fresh investment, boost liquidity, and improve market stability and efficiency.
Such developments would help create a more favourable environment for investors and contribute to the wider economic growth of Bangladesh.
