The continuous decline in the number of foreign and expatriate investors in Bangladesh’s stock market has finally halted. September witnessed a rise of 40 Beneficiary Owners (BO) accounts held by foreign and expatriate investors. The same period also saw an increase in the number of local investors.
According to data from the Central Depository Bangladesh Limited (CDBL), the total number of BO accounts in the stock market stood at 1,652,227 on September 30. This is an increase from 1,645,401 at the end of August. This means 6,826 new BO accounts were opened in September.
Foreign and Local Investment Trends
Currently, there are 43,801 BO accounts under the names of foreign and expatriate investors, up from 43,761 at the end of August. This 40-account increase in one month marks a reversal of a downward trend; from November 2023 to August, these investors were steadily exiting the market. For context, on October 29, 2023, the number of accounts held by foreign and expatriates was 55,512, indicating a loss of 11,711 accounts over the year.
The number of local investors also saw an increase in September. Domestic investors currently hold 1,590,695 BO accounts, up by 6,591 from 1,584,104 at the end of August. However, compared to the beginning of the current year, when the number of local investors was 1,773,551, the current count reflects a decrease of 121,324 accounts.
Investor Demographics and Account Types
The breakdown by gender shows that the number of male investors rose by 5,578 in September, bringing their total BO accounts to 1,241,476. Similarly, the number of female investors increased by 1,049, with their total BO accounts now standing at 393,020.
Company accounts also increased by 199, reaching a total of 17,731.
Categorized by nature, single-name BO accounts saw an increase of 6,219, while joint-name accounts rose by 1,408.
Market Performance Downturn
Despite the increase in the number of investors, the market index experienced a decline. The Dhaka Stock Exchange’s (DSE) main index, DSEX, which was at 5,594 points on August 31, dropped to 5,415 points in September, a decrease of 179 points in one month.
In the same period, the DSE’s market capitalization fell by BDT 2,085 crore (approx. $189 million USD, based on a $1 = BDT 110 exchange rate). Market capitalization stood at BDT 7,28,048 crore (approx. $66.18 billion) at the end of August and declined to BDT 7,25,963 crore (approx. $65.99 billion) in September.
The decline in trading volume also continued. After briefly crossing the BDT 1,000 crore mark (approx. $90.9 million), the daily transaction volume dropped back to the BDT 600 crore range (approx. $54.5 million) in the last 15 working days.
