Portfolio investment accounts for only 2.0pc

The country's capital market witnessed a declining trend during January-March, 2019 following panic sales by jittery investors amid a 'lack of confidence'. Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) said this in a review of economic situation in Bangladesh for January-March, 2019. The MCCI said stocks tumbled on 31 March 2019, the last trading day of the quarter, and the prime index of the Dhaka Stock Exchange (DSE) fell below 5,500-mark. "The index went down below 5,500-mark as worried investors continued their selling spree amid concern over the prevailing liquidity crunch in the financial sector," the MCCI said. During January-March, 2019 the turnover also declined moderately on the premier bourse Dhaka Stock Exchange. The Dhaka Stock Exchange featured a turnover of above Tk 5.30 billion on January 1 and later the turnover came down to above Tk 3.61 billion on March 31, 2019. On March 31, 2019 the index of Chittagong Stock Exchange (CSE) also ended lower with its selective categories index (CSCX) losing 48 points to settle at 10,178. It said after two months of positive run, the net foreign investment at Dhaka Stock Exchange turned negative again in March, 2019. "The net foreign investment turned negative as overseas investors went for selling shares amid volatility in the country's banking sector and capital market," the MCCI said. In March, the foreign investors sold shares worth Tk 4.98 billion and bought shares worth Tk.3.75 billion. In contrast, in February 2019, they bought shares worth Tk.5.87 billion against their sales worth Tk.2.64 billion. In Bangladesh, foreign investment accounts for less than 2.0 per cent of the premier bourse's total market capitalisation, which is the lowest among South Asian countries. — FE Report