Net foreign investment at Dhaka Stock Exchange (DSE) turned negative in April as the foreign investors went for large scale sale of shares due to protracted confidence crisis in the market.
Last month, they purchased shares worth Tk257 crore and sold shares worth Tk411 crore, meaning the net investment was Tk154 crore in the negative, according to data of the premier bourse.
Market operators said that the recent drop in the stock market had caused confidence crisis for both small and foreign investors that resulted in huge sale pressure from all types of stock investors.
The DSE’s benchmark index, the DSEX, lost more than 700 points in the last three months with the market value of stocks dropping by about Tk32,000 crore during the period.
The foreign investment turned negative as a section of overseas investors might went for profit booking after notable investment in the previous two months, market operators said further.
The net foreign investment dipped to Tk123 crore negative in March after injecting Tk498 crore in the previous two months. Net investment was Tk323 crore in February and Tk 175 crore in January.
In March, the foreign investors sold shares worth Tk498 crore against their purchase of shares worth Tk375 crore. In February, they bought shares worth Tk587.15 crore against their sales worth Tk263.97 crore.
The sudden gloomy environment at the market instigated the foreigners to withdraw funds from the capital market, it was learnt.
The total foreign turnover at DSE increased to Tk873 crore in March from Tk851 crore in the previous month.
The net foreign investment surged by 84% to Tk323 crore in February, compared to Tk175.29 crore in the previous month.
Foreign investors bought shares worth Tk587.15 crore against sales of shares worth Tk263.97 crore in February. In January, the foreigners bought shares worth Tk495.19 crore against sales of shares worth Tk319.90 crore.
Market operators said that the foreign investors went on a bargaining hunt while buying shares, after continuous fund withdrawal in 2018.
In 2018, net foreign investment dipped to negative Tk593.47 crore, which was Tk1,704.94crore positive during 2017, according to data of the premier bourse.
Foreigners bought shares worth Tk4,496.24crore, against their share sales of Tk5,089.71 crore last year. But in 2017, overseas investors had bought shares worth Tk6,576.29crore, against their share sales of Tk4,871.34 crore.
