The net overseas investment at the Dhaka Stock Exchange declined to a 31-month low at Tk 12.45 crore in August due to increased share sales by foreign investors to make short-term profit. August figure was the lowest since January, 2012 when foreign investors’ net investment at the bourse was Tk 5.02 crore. In August, overseas investors bought shares worth Tk 164.93 crore against their share sales of Tk 152.47 crore, with the total turnover at the bourse standing at Tk 317.40 crore.
Capital market experts said that the overseas investors might increase their share sales at the bourse in August as they got satisfactory return from the stocks they purchased earlier.
‘Overseas investors might sell shares in increased number following rise in share prices during the period,’ Union Capital managing director Akhter H Sannamat told New Age.
Akhter, also the vice-president of Bangladesh Merchant Bankers Association, said, ‘There is nothing to be worried about significant decline in overseas investment as nothing so unpleasant happened in our country that may prompt foreigners to withdraw their investment from our market.’
It might be the re-design of portfolio, which is responsible for the sudden increase in share sales and decline in net investment, he said.
Terming the portfolio investment as short-term investment Yawer Sayeed, managing director and chief executive officer of AIMS of Bangladesh Limited, said that foreign investors always tried to gain profit within short period of time.
‘That’s why they always sell off shares when they get expected gain from a scrip.’
Overseas investors in July this year bought shares worth Tk 166.45 crore against their share sales of Tk 86.80 crore.
As per the DSE data, net overseas investment was Tk 77.65 crore in July against Tk 362.63 crore in the previous month.
The net foreign investment at the DSE hit a fresh all-time high of Tk 572.08 crore in April this year when they bought shares worth Tk 876.43 crore and sold shares worth Tk 304.35 crore.
The previous highest single-month net foreign investment at the bourse was Tk 339.49 crore in June last year when overseas investors had bought shares worth Tk 339.49 crore and had sold shares worth Tk 58.30 crore with the total turnover standing at Tk 453.21 crore.
The previous highest monthly net investment by the overseas investors was Tk 251 crore in July 2007.
As per the DSE data, net overseas investment was Tk 128.63 crore in May as against Tk 572.08 crore in April.
The net overseas investment at the DSE declined to Tk 96.96 crore in March from Tk 121.04 crore in February.
-With New Age input
