Dhaka Stock Exchange (DSE), the country’s premier bourse, received about Tk3.4bn in foreign investments in June; the highest in the last fiscal year.
It rose more than 7% from the previous month’s Tk3bn and was the highest in 12 months, according to net position of portfolio investment recorded by Dhaka Stock Exchange.
In June (the last month of the just concluded financial year), the foreign investors also sold shares worth Tk580m; Tk60m higher than those sold in the previous month.
“Foreign investors showed interest on Bangladesh capital market due to improvement in political situation,” said Rakibur Rahman, immediate past DSE president. He said a rise in forex reserves and remittance inflows contributed towards the acceleration of foreign investment.
Foreign investment makes up only around 2% of total investment at DSE, which is the lowest in the South Asia region.
An analyst said cheaper prices of stocks have attracted investors, increasing the fund flow in the stock market in recent times.
An attractive yield of government securities - as well as appreciation of taka against the dollar - also contributed to the positive growth of net foreign portfolio investment, he said.
Recently, stock prices decreased sharply, encouraging foreign investors to purchase stocks. Purchases were mainly in financials, power, telecommunications and IT, said a stock broker.
Meanwhile, government’s revenue income from the DSE fell by almost 52% in the concluded fiscal year due to a lower volume of trade.
During the period, the government received Tk1.3bn as revenue; down Tk1.42bn compared to the previous fiscal year’s Tk2.72bn.
The government’s earnings from the brokerage commission and sales of sponsor and placement shares plummeted last year as the stock market saw a decline in turnover value, said a DSE director. He also said turnover marked a substantial fall due to investors’ low participation.