The net overseas investment at the Dhaka Stock Exchange increased by 27.16 per cent or Tk 364.16 crore in 2017 compared with that in the previous year.
Foreign investors’ net investment at the country’s premier bourse was Tk 1,704.94 crore in 2017 against Tk 1,340.70 crore in 2016.
Market operators said the market started to gain momentum since December last year and maintained the vibe throughout this year that prompted the overseas investors to invest at the DSE.
The DSE’s key index, DSEX, was on a record-breaking run in 2017 with reaching the highest at 6,336.88 points on November 26.
The index added 24 per cent, or 1,208 points, over the year to close at 6,244.52 points on Thursday, the last trading session of the year.
Besides, the average turnover at the DSE advanced by 82 per cent to Tk 874.83 crore in 248 trading days in 2017 compared with that of Tk 494.43 crore in the previous year.
Former adviser to an interim government Mirza Azizul Islam said that the market had been going through an upward momentum in recent months that attracted the foreign investors to the market.
‘The figure is very insignificant considering our market capitalisation. So there is nothing to be worried as huge foreign investment at the stock market sometimes becomes risky,’ he said.
Former Merchant Bankers Association president Mohammad A Hafiz told New Age that due to the stable economy in the country, the foreigners injected fund in the capital market.
He said that acceptance of the country’s capital market to the overseas investors increased after the demutualisation of the two stock exchanges.
The foreign fund would increase further when the strategic partner will be involved with the bourses, he added.
Under the demutualisation schemes, the DSE and the Chittagong Stock Exchange will have to get their strategic partner by the February 8, 2018 deadline set by the Bangladesh Securities and Exchange Commission.
Hafiz said absence of political instability in the country was among other reasons that lured foreigners to invest at the DSE.
In 2017, the foreign investors purchased shares worth Tk 6,576.29 crore against share sales worth Tk 4,871.34 crore.
The overseas investors had purchased shares worth Tk 5,057.4 crore in 2016 against share sales worth Tk 3,716.25 crore.
Foreign investors’ turnover on the DSE also increased by 30.48 per cent, or 2,674.34 crore, to total at Tk 11,447.63 crore in 2017 compared with that of Tk 8,773.3 crore in the previous year.
Overseas investors’ turnover at the bourse in 2017 was the highest.
According to the DSE data, the net overseas investment at the DSE was Tk 78.43 crore in 2011, Tk 792.59 crore in 2012, Tk 1,942.89 crore in 2013, Tk 2,619.78 crore in 2014 and Tk 185.50 crore in 2015.
The net overseas investment at the bourse was negative Tk 767.58 crore in the year of market crash (2010).
Overseas investors’ turnover at the bourse was Tk 3,362.11 crore in 2010, Tk 1,904.19 crore in 2011, Tk 2,355.23 crore in 2012, Tk 2,834.90 crore in 2013, Tk 6,600.94 crore in 2014 and Tk 7,465.4 crore in 2015.
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