Stocks
19 Days See 15K BO Accounts Liquidated
During May, a mere 19 trading days saw nearly 15,500 investors liquidate all their shares in their Beneficiary Owners (BO) accounts. Concurrently, 8,000 new investors opened BO accounts and joined the market.
This data, sourced from Central Depository Bangladesh Limited (CDBL), which manages the BO accounts and automates the shareholding process for stock market investors, paints a concerning picture.
According to CDBL, the number of zero-share BO accounts stood at 3 lakh 68 thousand 435 on April 30. By the end of May, this figure had increased to 3 lakh 83 thousand 928 indicating that 15 thousand 493 investors sold off all their shares during the month.
The rise in zero-share BO accounts has led to a decline in active BO accounts, those holding shares. As of the last trading day in May, the number of active BO accounts had decreased to 13 lakh 30 thousand 329 down from 13 lakh 43 thousand 639 at the end of April. Active BO accounts are defined as those holding shares and participating in the market.
According to data from the Dhaka Stock Exchange (DSE), out of the 19 trading days in May, the market experienced a decline on 14 days. This downturn affected the prices of most traded shares, with many companies facing a scarcity of buyers. To curb the falling prices, the Bangladesh Securities and Exchange Commission (BSEC) set a maximum daily price drop limit of 3% in April.
Due to this limit, a significant number of investors rushed to sell their shares at 3% lower prices as soon as the market began to fall each day. As a result, many companies’ share prices dropped by 3% at the start of trading, leaving no buyers for these shares.
Market insiders believe this situation arose due to the continuous decline in share prices. Panicked investors are selling shares to minimize losses, while lending brokerage houses and merchant banks are forcefully selling shares, known as “forced selling,” to adjust loans. Consequently, the number of zero-share BO accounts is increasing day by day.
As share prices continue to fall, forced selling also rises. According to regulations, when a share price drops below a certain limit, lending institutions can sell the shares in the investor’s BO account to adjust the loan. This process is known as forced selling in the stock market.
DSE data reveals that the main index of DSE dropped by 333 points or 6.5% overall in May. The DSEX index stood at 5,585 points at the beginning of May and fell to 5,252 points by the last trading day on Thursday. This decline has led to an increase in the number of zero-share BO accounts. According to CDBL, about 16,000 investors sold all their shares in April as well. Therefore, in the past two months, approximately 31,500 investors have sold all their shares from their BO accounts.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
