Nearly 24pc BO accounts inactive
Saturday, 2 January 2010
Mohammad Mufazzal
In the last six months more than 530 thousand (5.30 lakh) Beneficiary Owners (BO) accounts were opened by investors raising the total number to 2.655 million by the year-end.
The number of BO accounts on June 30, 2009 stood at over 2.124 million, about six times the BO accounts opened up to June, 2005.
Analysts said as the bank deposit rates were decreasing, the investors were going to the capital market with expectation of better profit. At the same time, a large number of investors entered the capital market being inspired by restoration of democratic rule and availability of a few good issues like Grameenphone and several mutual funds.
"At present the growth in credit flow to the private sector has fallen and the banks' deposit rates are also decreasing. So, for better profit the investors are entering the capital market. It's the main reason behind the increasing number of investors in the capital market," former chairman of the Securities and Exchange Commission (SEC) and former finance adviser AB Mirza Azizul Islam told the FE.
"Some good issues like Meghna Petroleum and Grameenphone drew a large number of investors into the capital market," he added.
According to the Central Depository Bangladesh Limited (CDBL), more than 1.919 million BO accounts are active out of the total 2.655 million opened so far.
About 600 thousand accounts were closed because of duplication and account fee defaults.
"New investors entered the capital market after restoration of democratic rule, infrastructure development, rise in market capital and availability of good issues like Grameenphone and mutual funds," Managing Partner of AT Capital Ifty Islam told the FE.
"The supply of good quality shares must be consistent with the increasing number of investors," he added.
In 2009, 10 issues, namely Prime Finance First Mutual Fund, Bay Leasing and Investment Limited, Asia Insurance Limited, Rupali Life Insurance Company Limited, EBL First Mutual Fund, Marico Bangladesh Limited, Dacca Dyeing and Manufacturing Company Limited, ICB AMCL Second Mutual Fund, Islami Insurance Bangladesh Limited, and Grameenphone Limited, entered the capital market.
Another seven issues-Trust Bank 1st Mutual Fund, DBH First Mutual Fund, Prime Bank 1st ICB AMCL Mutual Fund, ICB Employees Provident Mutual Fund One: Scheme One, R.N. Spinning Mills Limited, Dhaka Insurance Limited and Provati Insurance Company Limited have completed initial public offering (IPO) subscriptions.
According to the SEC, about 30 mutual funds and a government enterprise, Janata Bank Limited, are awaiting the SEC nod to offload their shares. According to analysts, if approved, those issues also will draw a large number of new investors into the capital market.
In the last six months more than 530 thousand (5.30 lakh) Beneficiary Owners (BO) accounts were opened by investors raising the total number to 2.655 million by the year-end.
The number of BO accounts on June 30, 2009 stood at over 2.124 million, about six times the BO accounts opened up to June, 2005.
Analysts said as the bank deposit rates were decreasing, the investors were going to the capital market with expectation of better profit. At the same time, a large number of investors entered the capital market being inspired by restoration of democratic rule and availability of a few good issues like Grameenphone and several mutual funds.
"At present the growth in credit flow to the private sector has fallen and the banks' deposit rates are also decreasing. So, for better profit the investors are entering the capital market. It's the main reason behind the increasing number of investors in the capital market," former chairman of the Securities and Exchange Commission (SEC) and former finance adviser AB Mirza Azizul Islam told the FE.
"Some good issues like Meghna Petroleum and Grameenphone drew a large number of investors into the capital market," he added.
According to the Central Depository Bangladesh Limited (CDBL), more than 1.919 million BO accounts are active out of the total 2.655 million opened so far.
About 600 thousand accounts were closed because of duplication and account fee defaults.
"New investors entered the capital market after restoration of democratic rule, infrastructure development, rise in market capital and availability of good issues like Grameenphone and mutual funds," Managing Partner of AT Capital Ifty Islam told the FE.
"The supply of good quality shares must be consistent with the increasing number of investors," he added.
In 2009, 10 issues, namely Prime Finance First Mutual Fund, Bay Leasing and Investment Limited, Asia Insurance Limited, Rupali Life Insurance Company Limited, EBL First Mutual Fund, Marico Bangladesh Limited, Dacca Dyeing and Manufacturing Company Limited, ICB AMCL Second Mutual Fund, Islami Insurance Bangladesh Limited, and Grameenphone Limited, entered the capital market.
Another seven issues-Trust Bank 1st Mutual Fund, DBH First Mutual Fund, Prime Bank 1st ICB AMCL Mutual Fund, ICB Employees Provident Mutual Fund One: Scheme One, R.N. Spinning Mills Limited, Dhaka Insurance Limited and Provati Insurance Company Limited have completed initial public offering (IPO) subscriptions.
According to the SEC, about 30 mutual funds and a government enterprise, Janata Bank Limited, are awaiting the SEC nod to offload their shares. According to analysts, if approved, those issues also will draw a large number of new investors into the capital market.