Net foreign investment at DSE rises after 5 months
The net foreign portfolio investment at Dhaka Stock Exchange snapped a five-month negative run in September as the overseas investors went for bargain hunting in the bearish market.
In September, the foreign portfolio investors brought shares worth Tk 247.50 crore against their sales of shares worth Tk 212.34 crore with their net investment standing at Tk 35.16 crore after five consecutive months of negative figure.
The FPIs moved to inject fresh fund in the bearish market to maximise their gains as the share prices of many scrips dropped to their more than a year lows, stockbrokers said.
The overseas investors usually buy shares when the market comes down to the lowest possible mark, they said.
The DSE’s key index, DSEX, lost 876 points in the January-September period to close at 5,368.95 points on September 30 amid financial sector woes and political uncertainties.
Before September, the FPIs pulled out Tk 552.14 crore from the Bangladesh capital market in five months as they anticipated that the political tensions surrounding the national election would drag down the market.
In August, the net foreign investment was Tk 5.75 crore negative as the foreign investors sold shares worth Tk 181.76 crore against their purchase of shares worth Tk 176.01 crore.
The net foreign investment remained negative for five consecutive months since April.
It was Tk 24.69 crore negative in April, Tk 282.32 crore negative in May and Tk 206.68 crore negative in June.
Market analysts attributed the previous outflows to the political uncertainty, taka depreciation and financial crisis in the country.
Though the net foreign investment turned positive in September, the FPIs are still observing the country’s political situation ahead of the national election due by January next year, they said.
The net investment by the foreign investors at the country’s premier bourse surged to Tk 1,704.94 crore in 2017 from Tk 1,340.70 crore in 2016.
Overseas investors’ turnover at the bourse was Tk 3,362.11 crore in 2010, Tk 1,904.19 crore in 2011, Tk 2,355.23 crore in 2012, Tk 2,834.90 crore in 2013, Tk 6,600.94 crore in 2014 and Tk 7,465.4 crore in 2015.
The net overseas investment at the bourse was negative Tk 767.58 crore in the year of market crash (2010).
Source: https://mail.google.com