Drastic fall in BO account opening
Asaduzzaman Pallab | Wednesday, 2 March 2011
Asaduzzaman Pallab
The number of new Beneficiary Owners (BO) accounts has fallen down dramatically in the month of February amid continued slump in the stock market. According to the latest data of Central Depository Limited Bangladesh (CDBL), the total number of BO accounts was 31,990 in February whereas the number was 106,500 in January. The total number of BO accounts opened in 2010 was 1,572,700. Market insiders attributed the dramatic fall in the opening of BO accounts to the lack of interest of the general people in the stock market as the bearish trend continued in the last three months. According to them, the lack of number of initial public offerings (IPOs) in the pipeline also caused the reduction of the number of opening of BO accounts. The government has already decided to suspend the Book Building Method and only three IPOs are set to come to the market under Fixed Pricing Method. Of the three IPOs, one is Barkatullah Power Ltd, a local power generation company, and two others are mutual funds. Continued to page 14
The number of new Beneficiary Owners (BO) accounts has fallen down dramatically in the month of February amid continued slump in the stock market. According to the latest data of Central Depository Limited Bangladesh (CDBL), the total number of BO accounts was 31,990 in February whereas the number was 106,500 in January. The total number of BO accounts opened in 2010 was 1,572,700. Market insiders attributed the dramatic fall in the opening of BO accounts to the lack of interest of the general people in the stock market as the bearish trend continued in the last three months. According to them, the lack of number of initial public offerings (IPOs) in the pipeline also caused the reduction of the number of opening of BO accounts. The government has already decided to suspend the Book Building Method and only three IPOs are set to come to the market under Fixed Pricing Method. Of the three IPOs, one is Barkatullah Power Ltd, a local power generation company, and two others are mutual funds. Continued to page 14