FE Report (February 08, 2011)
New investors have kept pouring in the stock market despite a crash that has hurt tens of thousands of small investors severely, an official said Monday.
Since the stocks went on a free fall early December, some 250,000 beneficiary owner (BO) accounts have been opened.
Figures released by the Central Depository Bangladesh Limited, which keeps the electronic data of all share investors including individuals and companies, said 141,000 BO accounts were added alone in December.
An investor has to open a BO account to be able to trade in the share market and to apply for primary shares.
In January, the worst month in the stock market's recent history, at least 104,000 new BO accounts were opened, said CDBL chief executive M.A. Samad.
"The figures show new investors haven't turned their back on the capital market. The trend in new BO accounts opening remains strong and encouraging," he said.
He said in the first five days of February 10,000 BO accounts were opened and he expects the number to get momentum later in the month as an Initial Public Offering (IPO) of a new power company has invited subscription.
In 2010 a record 1.57 million BO accounts were opened as the booming market lured the country's elderly and female savers and hundreds of thousands of unemployed youngmen.
According to the latest count, the country now has 3,385,302 BO account holders including 144,850 non resident Bangladeshis and 8,607 companies.
The number has doubled in the past 15 months when the market rose more than 100 percent. In October, 2010 the CDBL added nearly 200,000 BO accounts -- a monthly record -- at the height of the share boom.
CDBL officials said the interest in the market could die down if the the number of new IPOs bottom out as the prospect for lucrative values looked dim following the crash.
The benchmark Dhaka Stock Exchange General (DGEN) Index shed more than 30 percent since it hit the historic high of 8918.51 on December 5 last year.
The smaller Chittagong Stock Exchange also embraced the same fate.
Thousands of small investors hit the streets in Dhaka and across the country, protesting the slump, which prompted the government to admit "mistakes" in handling the market. The government has set up a body to probe the fall.
CDBL officials said investors mainly follow IPO trail to decide whether to open a BO account or not.
"Typically investors rush to open BO accounts when they see declarations of new listings," he said.
At least 150,000 investors opened BO i.e. share accounts when the country's largest private company company, Grameenphone, invited subscription for its 141 million dollars IPO in October 2009.
Since the stocks went on a free fall early December, some 250,000 beneficiary owner (BO) accounts have been opened.
Figures released by the Central Depository Bangladesh Limited, which keeps the electronic data of all share investors including individuals and companies, said 141,000 BO accounts were added alone in December.
An investor has to open a BO account to be able to trade in the share market and to apply for primary shares.
In January, the worst month in the stock market's recent history, at least 104,000 new BO accounts were opened, said CDBL chief executive M.A. Samad.
"The figures show new investors haven't turned their back on the capital market. The trend in new BO accounts opening remains strong and encouraging," he said.
He said in the first five days of February 10,000 BO accounts were opened and he expects the number to get momentum later in the month as an Initial Public Offering (IPO) of a new power company has invited subscription.
In 2010 a record 1.57 million BO accounts were opened as the booming market lured the country's elderly and female savers and hundreds of thousands of unemployed youngmen.
According to the latest count, the country now has 3,385,302 BO account holders including 144,850 non resident Bangladeshis and 8,607 companies.
The number has doubled in the past 15 months when the market rose more than 100 percent. In October, 2010 the CDBL added nearly 200,000 BO accounts -- a monthly record -- at the height of the share boom.
CDBL officials said the interest in the market could die down if the the number of new IPOs bottom out as the prospect for lucrative values looked dim following the crash.
The benchmark Dhaka Stock Exchange General (DGEN) Index shed more than 30 percent since it hit the historic high of 8918.51 on December 5 last year.
The smaller Chittagong Stock Exchange also embraced the same fate.
Thousands of small investors hit the streets in Dhaka and across the country, protesting the slump, which prompted the government to admit "mistakes" in handling the market. The government has set up a body to probe the fall.
CDBL officials said investors mainly follow IPO trail to decide whether to open a BO account or not.
"Typically investors rush to open BO accounts when they see declarations of new listings," he said.
At least 150,000 investors opened BO i.e. share accounts when the country's largest private company company, Grameenphone, invited subscription for its 141 million dollars IPO in October 2009.
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