Despite the coronavirus crisis, 1.11 lakh new investors have entered the capital market within four months in a sign of growing investors’ confidence amid market-supportive measures.
According to the latest data from the Central Depository Bangladesh Limited (CDBL), the number of Beneficiary Owners (BOs) in the capital market stood at 26.63 lakh on 28 April this year, up 4.35 or 1.11 lakh from 25.52 lakh on 31 December 2020.
Market analysts said the government’s strong measures have facilitated the country’s capital market turnaround in building confidence among the people to invest in it.
Experts suggested that the government give a permanent shape to the capital market in order to continue the positive trend so that people will be coming up with more investments in the sector.
According to the CDBL, out of the total BO accounts as on 31 December, the BO accounts of male investors were 18,77,969. The BO accounts of women investors were 6,60,364.
In addition, the company BO accounts were 13,835.
Meanwhile, new investors are constantly entering the market as the capital market has been strong for the last four months.
As a result, many new investors entered the capital market during the time.
Till 28 April, among the total investors, 19,62,021 are male investors and 6,86,254 are female investors.
Besides, the number of BO accounts of different companies is 14,395.
A senior official of the Bangladesh Securities and Exchange Commission (BSEC) said the capital market is now more mature, no one will be able to manipulate the capital market.
We are providing much information to investors so they can invest in the market carefully, he mentioned.
If we feel anyone manipulating the market, we take immediate and necessary steps to stop any manipulation, he said adding that, “Hence, the capital market is now more secure than that at any other time.”
In this regard, eminent economist and market expert Prof Abu Ahmed told Bangladesh Post, “People’s interest in the capital market has increased due to tightening investment in savings certificates and lower interest rates on bank deposits.”
Investment in the capital market is increasing, especially as there are less opportunities for alternative investment, he said adding that investor confidence has begun to return after the new commission took charge, and its various positive steps.
“As part of its move, new investors are entering the market every day and BO accounts are increasing. As a result, transactions and market capitalization in the capital market are increasing,” Abu mentioned.
He said the behavior of investors in the capital market of Bangladesh is always opposite.
“The rule is that if you invest in a recessionary capital market, the chances of profit are higher. But when the price fell in the capital market of Bangladesh, the investors sold their shares in panic and left the market, he added.
Ahmed mentioned that the government should make some rules and give incentives including reducing corporate tax for listed companies to encourage good companies to be listed in the stock market.