Investor frustration over prolonged market losses has led to a staggering 49,000 beneficiary owners’ (BO) accounts being emptied by 20 February, triggering a wave of exits from the stock market reportedly.
Market analysts attribute this mass exodus to sustained financial setbacks during an extended downturn. Data from the Central Depository Bangladesh Limited (CDBL) shows a significant rise in zero-balance BO accounts. The number stood at 3.10 lakh on 6 August last year but surged to 3.59 lakh by 20 February 2025, reflecting a sharp increase in investor disengagement. Currently, 21% of the 16.86 lakh registered BO accounts are inactive, underscoring the extent of the selloff.
Furthermore, BO accounts holding shares declined by 36,056 to 12.59 lakh, signaling a deepening lack of investor confidence.
Following the fall of the Awami League government, the DSEX index of the Dhaka Stock Exchange (DSE) initially surged by 786 points, reaching 6,015 within four days. This rise was driven by optimism that the new administration would address economic instability linked to corruption, misinformation, and mismanaging the governance.
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However, investor sentiment has since weakened as government and regulatory reforms have either remained unclear or failed to reassure market participants. Policy decisions made without consulting market intermediaries have further eroded trust, exacerbating market concerns, according to insiders.
As a result, the DSEX has sharply declined, closing at 5,200 points on Thursday, highlighting a growing disconnect between investor expectations and the lack of decisive measures to stabilize and revive the market.
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