Net overseas investment at Dhaka Stock Exchange plummeted by seven fold or Tk 132.78 crore in November because of profit taking sales by foreign investors following recent gains on the market.
Foreign investors’ net investment at the bourse stood only Tk 18.94 crore in November, down from Tk 151.72 crore in October.
The November investment hit 15-month low after August, 2016 when the net investment was negative.
However, total turnover of the foreigners’ share trading doubled to 1,253.43 crore in November from that of 642.27 crore in the previous month.
Market operators said that the foreign investors’ participation on the trading floor rose in November, as indicated by the turnover, as they went for profit taking sales.
‘The decline in net overseas investment in last
month was not a bad sign as their involvement in the trading floor soared,’ said a stockbroker adding that the recent bullish market prompted them to take profit.
Share purchasing by the foreign investors soared by 160 per cent or Tk 391 crore to Tk 636 crore against that of Tk 245 crore in the previous month.
On the other hand, share sales by the overseas investors also increased by 55.8 per cent or Tk 83.56 crore to Tk 617 crore compared with that of Tk 396 crore in the previous month.
Stockbrokers said that the market saw record making days for multiple times during October- November period.
Foreign investors usually take position when prices of scrips are at a reasonable level and book profit when the market situation allows them to offload shares at comparatively better price, they said.
The key index of the bourse had increased to its all time high on November 26 when DSEX reached at 6,336.8 points, while it was at second highest level on July 13.
Overseas investors’ net investment increased to Tk 174 crore in September this year from Tk 31.7 crore in August.
On the other hand, net overseas investment at DSE surged by 402 per cent or Tk 1,816 crore in the financial year 2016-17 compared with that in the previous fiscal year.
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 2013-14 before coming down to Tk 1,299.83 crore in FY 2014-15 and Tk 451.64 crore in FY 2015-16.
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