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Net foreign investment at DSE negative in July

  • Published at 01:09 am August 2nd, 2018
dhaka stock market DSE
File photo of Dhaka Stock Exchange Limited Dhaka Tribune

According to the country’s premier bourse, foreign investors sold shares worth Tk444.74 crore in the month, while purchasing shares worth Tk 412.04 crore. The resulting net foreign investment stood at negative Tk32.7 crore

Net foreign investment at the Dhaka Stock Exchange (DSE) stayed negative for the fourth consecutive month in July, as foreign investors continued to sell off their shares in the capital market.

According to the country’s premier bourse, foreign investors sold shares worth Tk444.74 crore in the month, while purchasing shares worth Tk 412.04 crore. The resulting net foreign investment stood at negative Tk32.7 crore.

Net foreign investment in April stood at negative Tk24.69 crore, while in May it was negative Tk282.32 crore, and in June it was negative Tk206.68 crore.

In June, foreign investors bought shares worth Tk446.61 crore against sales of Tk653.29 crore.

Market operators said one of the reasons for the cuts in foreign investment was that foreign investors saw the capital market in Bangladesh as chaotic.

Media reports on scams in the banking sector and a liquidity crisis in the financial market has made foreign investors wary of investing, they added.

Furthermore, political uncertainty ahead of the national election and the depreciation of the taka against the dollar have also kept foreigner investors on the edge.

Stakeholders in the capital market have said they are concerned by the continuous trend of sales by foreign investors.

Foreign turnover declined by 22% in July, settling at Tk856.78 as compared to Tk1,099.9 crore in the previous month.

DSEX, the key index of DSE, shed 102 points in July.

Market operators said foreign investors may be waiting for the lowest possible share prices in order to maximize their gains.

Net investment by foreign investors at the DSE had surged to Tk1,704.94 crore in 2017 from Tk1,340.70 crore in 2016.

Foreign investment turnover at the bourse was Tk3,362.11 crore in 2010, Tk1,904.19 crore in 2011, Tk2,355.23 crore in 2012, Tk2,834.90 crore in 2013, Tk6,600.94 crore in 2014, and Tk 7,465.4 crore in 2015.