No of BO accounts rises by 1.11 lakh in Sept-Nov

The number of beneficiary owners’ accounts increased by 1,10,619 in last three months (September-November) amid vibrant primary market.
As of November 30, the number of BO accounts stood at 27,69,922, while the figure was 26,59,303 as of August 31 this year.
Investors usually open new BO accounts or revive their suspended ones to buy initial public offering shares, market operators said.
An abnormal surge in the share prices of newly listed companies in the first few days after their debut on the stock exchanges encouraged people to open BO accounts, they said.
The IPOs of ML Dyeing, VFS Thread Dyeing and Advent Pharmaceuticals each were recently oversubscribed by more than 30 times.
The market was mostly bearish during the period, losing 320 points in last three months due mainly to political uncertainties ahead of the national election scheduled for December 30.
However, a continuous surge in share prices of a number of small capitalised companies lured a section of investors to the market, market operators said.
Share prices of Stylecraft Limited reached Tk 5,000 per share and that of Monno Jute Stafflers Tk 5,600 per share during the period.
Moreover, some investors might open BO accounts to invest in the bearish market to maximise profits with an expectation that the market would rebound after the national election. 
Opening a BO account with the Central Depository Bangladesh Limited through a depository participant, which is usually a stockbroker or a merchant bank, is a must for trading shares at Dhaka Stock Exchange and Chittagong Stock Exchange.
Of the active 27,69,922 BO accounts, 20,20,784 are owned by male investors and 7,36,676 by female investors. The figures were 19,41,142 and 7,06,187 respectively on August 31, 2018.
Individual investors operate 17,40,783 BO accounts, investors jointly operate 10,16,677 BO accounts and 12,462 accounts are operated by different companies including institutional investors, CDBL data showed.
Of the accounts (excluding the company-owned BO accounts), 25,94,054 BO accounts are owned by Bangladeshi investors and 1,63,406 accounts owned by non-resident Bangladeshi investors, the data showed.
The IPO market was dull in the year of 2017 but this year the primary market was bullish.
So far this year, 14 companies including two mutual funds raised Tk 581 crore through issuing IPOs while only seven companies had raised Tk 219.25 crore from the capital market in 2017, hitting a decade low.
Runner Automobiles, Genex Infosys and SS Steel are waiting to be listed with the market soon. Currently, an investor has to pay Tk 450 per annum to keep his/her BO account active.
The number of BO accounts reached its peak at around 34 lakh in the fiscal year 2010-11, the year of market bubble-burst, as people, lured by the booming share prices, then had rushed to open accounts with different brokerage houses.
Source: http://www.newagebd.net

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