New investors are not coming to the capital market. Old people are also apprehensive about investing. Many are suffering from loss of investment. Investors are turning away from the stock market day by day.
At the end of June 2015, investors in the country’s capital market exceeded 31 lakh 95 thousand. At present the number of investors is 17 lakh 56 thousand. Accordingly, in the last 8 years, investors have decreased by 14 lakh 39 thousand or 45 percent.
Market analysts think that their lack of confidence in the capital market is mainly responsible for such market aversion of investors. Apart from this, investors have turned away from the market due to several problems including manipulation of shares, hasty decisions of regulators. They think that the number of investors in the capital market will never increase until these problems are solved.
However, Dhaka Stock Exchange (DSE) and Bangladesh Securities and Exchange Commission (BSEC) authorities say otherwise. They say the number of investors has decreased due to the lack of expected profits in IPOs (initial public offerings). In addition, many have exited the capital market due to prolonged recession.
According to DSE, there were about 32 million investors in mid-2015. This was mainly due to the IPO. But the BO numbers continued to decline as the IPO did not yield the expected returns. However, many have left the capital market with losses. But their number is not less.
Sumaiya Mary, an investor living in Segunbagicha, has turned away from the capital market due to losses. Currently a bank officer. Beneficiary Owners (BO) holder of Royal Capital, he invested 3 lakh taka in the capital market. He said, in the middle of 2010, I was making a profit by investing in the capital market. But I lost 30 percent of my capital in the crash that year. After that it did not come out of the market. I thought there would be ups and downs. I waited for the rise. I looked at bank shares to reduce losses. Later, I sold 75 percent of the shares I held and bought the bank’s shares. But I could not reduce the circle of loss even by buying shares of the bank. Later I got out of the market in 2029 due to disorientation. At the time of exit, I left with 2 lakhs.
Motijheel spoke with department store owner Humayun Rashid. He was a holder of Prime Securities. He invested a total of Rs 4 lakh in several stages at different times. He said, capital market is a smart investment place. Easy investment can make good profit. With this in mind, I invested in the capital market in 2014. First do well. I have seen 20 percent profit within one year. I took some money from my mother and later invested more. Buy shares of several good companies with that money. This started my downfall. Since then the losses have to be calculated. 28 percent loss of my capital in 2019. Later this list got bigger. At one point, unable to take the pressure of losing, I lost 31 percent of my capital and exited at the end of 2022. Many investors, including Abida, Manjurul, have lost capital by investing in the capital market.
Talked to jobber Jobaida Anjuman. He is the holder of Lankabangla Securities. He invested six lakh rupees in several stages. He has recently lost 22 percent of his capital by buying shares of some companies. Thinking to sell at a loss. But can’t be. He is unable to sell his shares due to imposition of floor price. 70 percent of the company’s shares he holds are stuck at the floor price.
Countless investors are stuck at the floor price, losing capital. After suffering such a loss, he quietly leaves the market when he gets a chance. Regulators don’t have time to listen to why they are leaving. They (regulators) are now looking for foreign investors after losing domestic investors. But the capital market is not thinking of fixing such a situation. Regulators go abroad and do road shows to attract foreigners. But they do not have constructive activities to bring back domestic investors. Investors who exited the market expressed their anger at such hostile behavior of the regulators in the capital market. It is said that more than 14 lakh investors have exited the capital market in the last eight years. Still coming out. Everyone came out suffering. But the stock market regulators are not moving.
Investors are the life force of the capital market, market analyst and professor Abu Ahmed said, out of 18 crore people, there are 1.75 lakh investors in the capital market, which is very insignificant.
Stating that it is sad to hear that people have lost capital or are leaving the capital market, he said that the regulators should think deeply about why investors are leaving the market. They have to identify the reason for their exit. All kinds of work should be done to solve it. Because domestic investors are turning away due to loss of capital, if it goes out, the way of foreign investment will be difficult. Then it will be seen that spending so much money on the road show will be of no use.
Saifur Rahman Majumdar, Chief Operating Officer of DSE said that we are working to increase the awareness of investors, we are discussing with investors on any issue. If there is a problem, I am solving it quickly. Our activities are ongoing to restore investors’ confidence in the capital market.
He also said that many people used to do BO because of the IPO. Now IPOs are not as profitable as before. Because of that, those BOs have become discouraged. Current market depth has increased. Investor confidence is also increasing.
Saifur Rahman said that the investors are less and less from the capital market day by day. Again many investors are observing the market without investing.
Stating that the economy is in recession in the world, he said that the impact of that recession has fallen on our capital market. Apart from this, many investors are facing problems in selling shares due to the imposition of floor prices fixed by the regulators.
He said that it is urgent to stop the floor price soon. I have written a letter in this regard. But BSEC did not heed it. They (BSEC) are saying that they will lift the floor price when the time is right. But there is no guidance on when it will be lifted.
BSEC Executive Director Mohammad Rezaul Karim said that investors are working to increase, the capital market is sensitive. It has many risks. We are doing workshops on how to invest avoiding those risks. We have been giving all the knowledge about capital market risk to investors and related parties with experts. Investors today understand the market context better than ever before.
Stating that BSEC has taken various steps to increase the confidence of investors, he said that the current commission has identified the weak areas of the capital market. Worked accordingly. Strong fundamentals have been created in the current market. No one can do anything now. Market depth has increased. Hopefully, investors will get the results. Investor confidence will increase further.
Stating that many people opened BOs in the past due to IPOs, he said, now they are not able to make much profit from IPOs. This reduced those investors. Apart from this, the capital market has been affected due to major collapse, global recession, corona virus. This may discourage investors from investing. In the same context BSEC Chairman Professor Shibli Rubaiyat-ul-Islam said that the floor price has been given in the interests of the capital market. It will be lifted when the recession is over. He also said that various steps have been taken to protect and increase the confidence of investors. I finished a lot of work. It is an ongoing process. Now the fundamentals of the capital market are in a much better position than before. The capital of the capital market has exceeded seven and a half million rupees. The index also crossed 6 thousand. The transaction is also in the house of thousands of crores of rupees.