Portfolio investment declines 6.67pc in Nov

FE Report | Published: December 02, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Net foreign investment in Dhaka stocks fell slightly by 6.67 per cent in November from October as overseas investors followed cautious stance.
Overseas investors bought shares worth Tk 3.48 billion and sold stocks worth Tk 1.65 billion, taking their net investment to Tk 1.82 billion in November, according to statistics from Dhaka Stock Exchange (DSE).
In October, net foreign investment was Tk 1.95 billion, as foreign investors bought stocks worth Tk 3.02 billon and sold shares worth Tk 1.07 billion, the DSE data showed.
However, total foreign turnover increased by 25.43 per cent in November from a month ago. Total turnover stood at Tk 5.13 billion in November which was Tk 4.09 billion in October, according to the DSE statistics.
"It is not possible to evaluate the foreign investment trend with one or two months' statistics, as they are long-term investors," said a leading stockbroker who deals with foreign investment.
The overseas investors still interested in the Bangladesh market with the country's favourable economic factors, political stability and a positive market outlook, the stock broker said.
"The net foreign investments in DSE fell slightly in November as foreign fund managers were closely observing the Bangladesh market situation," said an analyst.
"The foreign portfolio investors always want to see a peaceful and stable political environment for their investment".
The foreign investors thought that the country's political situation may deteriorate again. They went to sideline as an anticipatory move, as political instability would affect profit of the listed companies, he said.
He stressed political stability, improvement in power and infrastructure, macro-economic equilibrium and foreign investor-friendly policies to attract more portfolio investment in the market.
Also known as portfolio investment, foreign investments accounts for around 2 per cent of DSE's total market capitalisation of Tk 3,225.36 billion as of Monday.
The foreign investors preferred power and energy sector. But non-bank financial institutions, pharmaceuticals, multinational companies, telecom and IT also caught their attention, brokers said.
In January-November, foreign investors bought shares worth Tk 42.19 billion and sold shares worth Tk 17.62 billion to yield a net investment of Tk 24.57 billion, according to DSE data.
In 2013, foreign investors bought shares worth Tk 26.52 billion and sold stocks worth Tk 7.09 billion, taking their net investment for the year to Tk 19.43 billion.
Meanwhile, the prime index of the DSE shed 403.81 points or 7.80 per cent during the month of November. DSEX opened at 5,173.23 points and closed at 4,769.42 points in November.
babulfexpress@gmail.com