Foreign funds rise in stocks
Net foreign investment in the premier bourse returned to the positive territory after five months as foreign investors' purchase soared slightly in September as they bought good stocks at lucrative rates.
Dhaka Stock Exchange data showed the net foreign investment was Tk 35.16 crore last month when foreign investors purchased stocks worth Tk. 247.51 crore and sold off shares worth Tk 212.34 crore.
In August, the net foreign investment stood at Tk 5.75 crore in the negative, as foreign investors sold more than what they purchased.
“As good stocks became lucrative, foreign investors bought some shares,” said Mohammed Rahmat Pasha, managing director of UCB Capital Management.
Although the net foreign investment jumped, the turnover in the foreign portfolio is still very low.
The turnover rose 28.45 percent to Tk 459.85 crore in September, the second lowest in 2018. In August, the turnover was Tk 357.99 crore, the lowest not only so far this year but also in four years.
Pasha said the yield on US Treasury bond soared so foreign investors are investing in the tools. On the other hand, foreign investors are slightly averse to investing in Bangladesh's stock market because of a fear of political uncertainty.
Yesterday, the 10-year US Treasury yield was last at 3.071 percent, up from its close on Friday at 3.056 percent. The 30-year bond yield was last at 3.214 percent, up from Friday's close at 3.196 percent, according to Reuters.
Source: https://www.thedailystar.net