Political unrest dampens investors\\\' confidence in stock market: MCCI

The country's capital markets remained volatile during the period between January and March this year because of political unrest that dampened investors' confidence in the stock market.

Metropolitan Chamber of Commerce and Industry (MCCI) made the observations in its review of the economic situation in Bangladesh prepared for the third quarter (Q3) of the current fiscal year (FY) 2015.

According to information available with the Dhaka Stock Exchange (DSE), the DSE broad index (DSEX) shed 8.31 per cent or 411 points during the January-March period.

The review also said foreign investors adopted a 'go-slow' policy during the country's political turmoil.

"Foreign investment in the capital market is very small. At present, it accounts for around 1.0 per cent of DSE's total market capitalisation which is the lowest in South Asia region," the review reads.

The MCCI said the share price index, turnover and market capitalisation remained volatile in both Dhaka and Chittagong bourses.

"Market analysts attribute stock market's weaknesses to lack of investors' confidence in the wake of political unrest."

The review said net foreign investment in the DSE declined in March 2015 as foreign fund managers were on a selling spree because of prolonged political unrest.

mufazzal.fe@gmail.com