Foreign portfolio investment has picked up a rising trend in Dhaka Stock Exchange (DSE) in September this year after a five-month lackluster period.
Attractive share prices have brought back confidence in foreign investors to inject more money into the capital market, market analysts said.
During September, the total foreign transaction went up to Tk 459.85 crore, which was more than 28.51 percent or Tk 102 crore over the preceding month’s amount of Tk 357.78 crore, according to DSE data.
Foreign investors bought shares amounting to Tk 247.51 crore and sold at Tk 212.34 crore in the month. Thus, the net foreign investment reached more than 35.17 crore. In August, the overseas investors bought shares worth Tk 176.2 crore and sold at Tk 181.77 crore. Thus, the net investment to the tune of Tk 5.57 crore had gone out of the market during the period.
Experts said, “Foreign investors have injected more money in September as share prices came down significantly in recent months.”
“Overseas investors always wait for the share price fall,” he said, adding that they buy more shares compared to the number of sales, resulting in a rise in their investment in DSE.”
Eminent economist and market analyst Prof Abu Ahmed told Bangladesh Post that the share market plays a crucial role to expedite the country’s overall development. Therefore, the increase in foreign investment is very good news.
He said foreign investors have held their position on sector-wise securities as most of share prices fell ahead of the national elections.
He said the government should keep a close eye on the market side by side bringing some new IPOs in the market to attract more foreign investors.