The net overseas investment at the Dhaka Stock Exchange, the country’s premier bourse, surged by 402 per cent or Tk 1,816 crore in the just concluded financial year 2016-17 compared with that in the previous fiscal year.
According to DSE data, the net foreign investment totalled Tk 2,268.46 crore in FY17 after dipping in the previous two financial years.
The net foreign investment hit record Tk 2,493.67 crore in FY 2013-2014 before coming down to Tk 1,299.83 crore in FY 2014-15 and Tk 451.64 crore in FY 2015-16.
Market operators said that better economic growth and policy makers’ move to improve the capital market and political stability might drew foreigners’ attention to the market.
In FY17, overseas investors purchased shares worth Tk 6,138.91 crore against their sales of shares worth Tk 3,870.45 crore.
Share purchasing by foreign investors at the DSE went up by 43 per cent or Tk 1,871 crore in FY17 from that of Tk 4,267.77 crore in the previous year.
On the other hand, share selling by them inched down by 1.42 per cent or Tk 54 crore in last fiscal year as they had sold shares worth Tk 3,816.13 crore in FY15.
The turnover effected by overseas investors on the DSE increased by 23 per cent or Tk 10,009.37 crore from Tk 8,083.91 crore in the previous fiscal year.
Foreign investors’ net investment at the DSE was much higher — Tk 2,493.67 crore — in FY14 as they had bought shares worth Tk 3,791.63 crore and sold shares worth Tk 1,297.95 crore in the period.
Foreign Investment fell by 65 per cent or Tk 848.19 crore in the financial year 2015-16 compared with that in FY 2014-15.
DSE director Shakil Rizbi said that the surge in the foreign investment at the capital market was a sign of the market growth.
He said, ‘The shares that remained under-valued for years prompted the foreign investors to come to our capital market.’
A stockbroker said that although the overseas investment increased last financial year, the investment remained far below the amount of fund invested at the neighbouring country’s market in the period.
‘The foreigners had to go throw harassment to get approval of investment at our capital market. The policy should be eased more to attract foreigners,’ he said.
If data based on calendar year is considered, foreign investors’ participation at the DSE had reached to its all-time high in 2014 as their turnover at the bourse rose by 84.56 per cent in the year compared with that in the previous year.
In 2015, foreign investors’ turnover at the bourse was Tk 6,205 crore.
Considering the month-wise investment, the net foreign investment at the DSE had hit its all-time high at Tk 572.08 crore in April 2014 as overseas investors had bought shares worth Tk 876.43 crore and sold shares worth Tk 304.35 crore in the month.
The previous highest of the single-month net foreign investment was Tk 339.49 crore in June 2013.
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