Widgetized Section

Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone

BO accounts rise during January-March

stock-economyA total of 157,177 BO accounts were opened in the first quarter

The number of beneficiary owner’s (BO) accounts increased by 5.62% during January-March period as investors were trying to catch the upcoming initial public offerings (IPO).

According to Central Depository Bangladesh Limited (CDBL), a total of 157,177 BO accounts were opened in the first quarter.

The data as of March 27 showed the total number of BO accounts increased to over 29.53 lakh from 27.96 lakh in December 31, 2013.

“BO accounts increased due to rise in IPO in recent time. Many small investors always look for risk-free options of making profit???, said Ahmed Rashid Lali, former DSE vice president.

“There is no risk of losing money in the primary market.???

He said as the omnibus accounts were closed, the omnibus holders needed to open new accounts, which also led to the increase of BO accounts.

Small investors making investment in the primary market said IPOs helped them earn quick profit without risk of loss.

“Making profit is much easier in primary market than other options. Moreover, there is no possibility of loss. That’s why I opened BO account,??? said Fahim, a fourth-year student of Dhaka University.

Analysts said as many investors cannot trade in the margin accounts because of negative equity and strong IPO market, BO accounts rise.

“A group of investors, especially margin loan traders, are opening BO accounts to trade with fresh investment as they cannot trade in the margin accounts due to negative equity and vibrant IPO  market. It helped the number of BO accounts increase,??? said Akter Hossian Sannamat, managing director of Union Capital.

According to Bangladesh Securities and Exchange Commission (BSEC) data, the regulator has approved 11 IPOs in the first three months of 2014.

A good number of companies have also submitted prospectus to BSEC for approval to go public.

———————————–
Report: Ibrahim Hossain Ovi
Source: Dhaka Tribune

Share This Post