The net overseas investment at the Dhaka Stock Exchange plunged to negative Tk 94.72 crore in February compared with that in the previous month due to political uncertainties in the country.
Market operators said foreign investors were tensed amid the political uncertainties that began with the issue of the verdict against Bangladesh Nationalist Party chairperson Khaleda Zia in a graft case in the election year.
A special court on February 8 announced the verdict sentencing Khaleda Zia to jail for five years in a corruption case, which her party says was politically motivated to keep the party out of national elections, likely to be held at the end of this year.
Police have recently detained hundreds of BNP activists and leaders, including some senior leaders, amid unrests surrounding the verdict.
Market operators said that foreign investors apprehended that the turmoil would continue as it is an election year.
Moreover, foreigners went for profit-taking share sales from the market since the market was also shaky due to a liquidity crisis at the financial sector and the DSE’s share sales to a strategic partner.
DSEX, the key index of the DSE, lost 169 points in February and 373 points in the first two months of the year. The average turnover at the market declined further to Tk 404.19 crore in February from Tk 437.92 crore in the previous month.
In February, the net foreign investment at the DSE plunged by Tk 282 crore to negative Tk 94.72 crore from that of Tk 187.24 crore in the previous month, showed the data released by the bourse on Thursday.
The month’s net investment was the lowest in four months as it was negative Tk 151.72 crore in October, 2017.
The foreign investors bought shares worth Tk 392.99 crore against their share sales worth Tk 487.71 crore in February.
The buy and sales in January were Tk 667.43 crore and Tk 480.19 crore respectively.
The total foreign turnover on the bourse also declined by 2 per cent to Tk 880.70 crore in February from that of Tk 1,147 crore in the previous month.
The net overseas investment witnessed a threefold or Tk 124.68 crore increase in January this year compared with that in the previous month.
Foreign investors’ net investment at the country’s premier bourse surged to Tk 1,704.94 crore in 2017 from Tk 1,340.70 crore in 2016.
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.
The net overseas investment at the bourse was negative Tk 767.58 crore in the year of market crash (2010).
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