The exodus of over 600,000 investors from Bangladesh’s stock market over the past five years is a stark warning signal that cannot be ignored.
With approximately 76,492 non-resident Beneficiary Owners (BO) and around 548,475 local BO account holders leaving the market, the implications for the financial landscape are profound.
This mass withdrawal reflects a deep-seated disillusionment with a system that has failed to deliver on its promises.
This newspaper on Tuesday reported that the investors enter the stock market with the hope of securing returns on their hard-earned money.
However, many have faced continuous price declines, rampant market manipulation, and a lack of adequate regulatory oversight.
The situation has been exacerbated by widespread rumours and a severe deficiency in good governance.
The data from the Central Depository Bangladesh Ltd (CDBL) paints a grim picture.
The number of BO accounts held by non-resident investors has plummeted from 123,457 in October 2020 to just 46,965 by October 2024 — a staggering 62 per cent decline.
Domestic investors have not fared much better, with the total number of BO accounts dropping from 2,159,504 to 1,611,129, reflecting a 25.39 per cent decrease.
This trend raises serious questions about the future viability of the stock market as a reliable investment avenue.
We agree with the president of the DSE Brokers Association of Bangladesh (DBA), who aptly summarises the situation: “Investors enter the stock market to make a profit, but many end up losing their savings.”
This sentiment resonates with a growing number of investors who feel that the current market environment is not conducive to their financial well-being.
To reverse this alarming trend, it is imperative that the government and regulatory bodies take immediate action to restore investor confidence.
This includes implementing stricter regulations to curb manipulation, enhancing transparency, and ensuring that investors receive adequate feedback and support.
A commitment to good governance and accountability is essential to rebuilding trust in the market.
The future of Bangladesh’s stock market hinges on its ability to attract and retain investors.
Without significant reforms and a renewed focus on investor protection, the market risks becoming a shadow of its potential, depriving the economy of vital investment and growth.
It is time for stakeholders to come together and take decisive steps to revitalise this crucial sector, ensuring that it serves as a beacon of opportunity rather than a source of frustration.
