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Number of mobile app users still remains very insignificant compared to total number of BO (beneficiary owner’s) accounts as the exchanges’ promotional activities were not sufficient to make the app popular.
Resumption of share trading on the bourse is not being possible mainly due to very limited number of mobile app users.
Trading remained suspended since March 26 last due to the lockdown, declared by the government but a large digital platform could allow the virtual trading, experts pointed out.
Dhaka Stock Exchange (DSE) on March 9, 2016 launched the mobile-based share trading app.
According to information of Central Depository Bangladesh Limited (CDBL), the number of active BO accounts is 2.58 million as of March 25 last.
On the other hand, after four years of launching the service the number of investors using mobile app so far rose to only 52,000, which is only 2.0 per cent of active BO accounts.
Apart from executing buy and sale orders, the app provides some featured information, including buy or sell alerts, notifications and portfolio status to the investors, which are not easily available on the website or via brokers’ services.
Syadur Rahman, president of Bangladesh Merchant Bankers Association (BMBA) said the number of mobile app users is yet to be significant as the stock exchange was not active to promote the service.
“The DSE launched the mobile app so that investors can avail the advantage of technology. The DSE was supposed to engage stock brokers to bring significant number investors under the coverage of mobile app service,” the BMBA president said.
Mohammad Saifur Rahman, an executive director of the securities regulator, said the job of promoting mobile app lies with the stock brokers.
“So, brokers can say why the number of mobile app users still remains insignificant compared to total number of BO accounts,” Mr. Rahman said.
Some insiders said many stock brokers were reluctant in promoting the mobile app service as investors who use mobile app are able to know instant information regarding buy-sell and portfolio status.
“The mobile app ensures more transparency compared to transactions executed through manual orders. Many brokers perhaps are unwilling to provide notable investors with the facility of knowing portfolios instantly,” the insider said.
Asked, the president of DSE Brokers Association (DBA) Sharif Anwar Hossain refused the complaint on stock brokers’ reluctance in promoting the mobile app service.
He said the stock markets failed to observe any momentum after 2010-11 debacle and investors’ interest to use the mobile app was also not significant.
“The market observed frequent sluggish trend after 2010-11 stock market debacle. That’s why, the number of mobile app users remains insignificant,” Mr. Hossain said.
He said most of the investors prefer to conduct trading being present on the trading floors.
“They also like gossips while conducting transactions at the trading floors. So, the interest of using mobile app was not observed among a significant number of general investors,” DBA president Mr. Hossain said.
Amid the lockdown enforced across the world to contain the spread of COVID-19, stock exchanges remain open in other countries, except Bangladesh and Nepal.
Under such a situation, some market intermediaries and investors raised the demand of resuming trading in the country’s stock exchanges.
Md. Rakibur Rahman, a director of Dhaka Stock Exchange (DSE), said income of most of the market operators including the brokerage firms nosedived.
“Many investors are also unable to liquid their investments amid the ongoing crisis. That’s why, I propose to resume trading in the stock exchanges,” Rahman said.
But the securities regulator and a section of directors of the Dhaka Stock Exchange (DSE) said incomplete automation on the stock exchanges and limited number of mobile app users do not support the resumption of trading.
“Investors can gather on the trading floors if trading is resumed. Who will take the responsibility if someone is infected by COVID-19?” said an official of the securities regulator.
(FE)
