B Mirror Report: Despite signs of a gradual recovery in Bangladesh’s stock market after a prolonged downturn, the number of Beneficiary Owners (BO) accounts declined sharply in July, reflecting continued caution among investors.

According to data from the Central Depository Bangladesh Limited (CDBL), the total number of BO accounts stood at 1,652,365 as of August 4, down from 1,675,252 at the end of June. This represents a decline of 22,887 accounts during the month.

With 25 trading sessions held in July, the market lost an average of 915 BO accounts per trading day.

A BO account, opened through a brokerage house or merchant bank, is mandatory for investors to buy and sell securities in the stock market. CDBL is responsible for maintaining all BO account records.

The drop was largely driven by domestic investors. The number of BO accounts held by local investors fell to 1,592,146 from 1,613,724 at the end of June, a decrease of 21,578 accounts, or an average of 863 accounts per trading day.

Meanwhile, BO accounts held by foreign and non-resident Bangladeshi investors declined to 42,003, compared with 43,183 a month earlier, marking a reduction of 1,180 accounts, or 47 accounts per trading day.

The number of BO accounts owned by male investors dropped to 1,245,561 from 1,262,789, a decrease of 17,228 accounts during the month.

Female investors’ BO accounts also declined, falling to 388,588 from 394,118, a reduction of 5,530 accounts.

Although individual BO accounts account for nearly three-quarters of all accounts, joint accounts recorded a proportionately higher rate of closure.

Individual BO accounts declined by 15,028, falling to 1,200,257 from 1,215,285 at the end of June.

Joint BO accounts decreased by 7,730, reaching 433,892, compared with 441,622 a month earlier.

Corporate participation also weakened during the month. Company BO accounts dropped to 18,216 from 18,345 at the end of June, a decline of 192 accounts, according to CDBL data.