BO accounts on the riseBig investors regain interest in BD’s capital market

Bangladesh’s capital market is regaining momentum, attracting major investors amid rising trading activity and a sharp increase in Beneficiary Owner (BO) accounts over the past year, according to the Bangladesh Securities and Exchange Commission (BSEC).

While some quarters have suggested that investor participation in the stock market is shrinking, official data tells a different story.

Recent BSEC statistics indicate that while small investors are gradually pulling back, the presence of high-net-worth individuals and institutional investors has strengthened significantly.

The number of portfolios valued between Tk50 crore and Tk500 crore has seen a marked increase compared to June 2024.

Similarly, portfolios exceeding Tk50 lakh have also gone up, pointing to a clear shift in investment patterns toward larger stakes.

Retail participation, particularly investments below Tk1 lakh, has, however, dipped. As of June 30 this year, the number of portfolios below Tk1 lakh stood at 831,748, down from 916,157 in the same period last year.

Rise in Millionaire Investors

BSEC data further reveals a steady growth in the number of millionaire investors.

In June 2024, 12993 investors held portfolios valued over Tk1 crore. That number has now risen to 13316.

Although portfolios above Tk10 crore have declined slightly, portfolios valued over Tk50 crore have increased.

In June last year, there were 696 investors in the Tk50 crore-plus category; the number has now climbed to 733.

The number of investors with holdings over Tk100 crore has gone up by 22, and portfolios exceeding Tk500 crore have increased by two.

Market insiders say large investors are holding firm, driven by the belief that the market will recover over time.

"Unlike small investors who are more vulnerable to market shocks, large investors are committed for the long term. They understand that patience in the capital market pays off," said Asad Mia, Branch Manager at Global Securities in Motijheel.

Echoing this, Tarek Hossain, a veteran investor with nearly a decade of experience, noted, "Small investors tend to trade frequently for short-term profits, while big investors invest in fundamentally strong companies and stay invested for years, riding out temporary downturns."

Demand for Quality IPOs

Despite the ongoing recovery, the market has yet to witness the listing of any major fundamentally strong company over the past year. However, efforts are underway to change that, officials say.

Dr Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser said the government is preparing a list of both state-owned and private companies to engage them in discussions about potential market listings.

"Improving market surveillance is equally important. Strong oversight will deter manipulative activities and help restore investor confidence," he added.

Abu Ahmed, Chairman of the Board of Directors at the Investment Corporation of Bangladesh (ICB), stressed the importance of quality listings.

“One good company can change the entire market sentiment. We must also consider bringing in multinational firms alongside domestic entities,” he said.

BSEC Chairman Khondoker Rashed Maqsood reaffirmed the Commission’s commitment to listing high-quality companies, and emphasised implementing taskforce recommendations to ensure sustainable growth in the capital market.