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Net foreign investment in stocks rebounds in March

FE Report | April 02, 2018 00:00:00

Net foreign investment in stocks marked a substantial rise in March this year as overseas investors put funds taking advantage of the lucrative price level.

An analyst said the favourable macroeconomic indicators coupled with political stability increased the foreign investors' confidence to park fresh funds in the securities.

The overseas investors bought shares worth Tk 4.56 billion, while they sold stocks of Tk 2.99 billion, to take their net investment to Tk 1.56 billion in March 2018, according to statistics from the Dhaka Stock Exchange.

In February, the net foreign investments was negative Tk 947 million as the foreign investors bought shares worth Tk 3.93 billion and sold shares worth Tk 4.88 billion.

"Net foreign investment increased in March, after previous month's profit booking sale, and the trend would continue in the coming months too as the market offers discounted rate of many fundamental stocks," said a stockbroker, preferring anonymity.

He noted that the steadily growing economy and matured market behaviour after the demutualisation of bourses have encouraged foreign investors to put their money in Bangladesh stocks.

"Lucrative dividends declared by multinational companies also encouraged the investors to park money in the securities," he added.

Foreign fund managers see the Bangladesh market as one with potentials among the emerging markets due to positive macroeconomic indicators and a stable political scenario in recent months, said a local stockbroker, who deals with foreign investors.

Banks shares were the top choice of foreign investors, who also seemed interested in power and energy, non-banking financial institutions, telecom, pharmaceuticals, multinational companies and IT companies.

Also known as portfolio investment, foreign investment accounts for less than 2.0 per cent of the premier bourse's total market capitalisation, which stood at Tk 3,993 billion as of Sunday.

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