Net foreign investment at the Dhaka Stock Exchange increased by 17 per cent in November compared with that in the previous month as lucrative share prices lured overseas investors.
The investment stood at Tk 276.72 crore in November as overseas investors bought shares worth Tk 342.44 crore and sold shares worth Tk 65.71 crore in the month.
Market operators said that overseas investors increased their participation in the market as they found share prices lucrative after the benchmark general index of the DSE, DSEX, declined to around 3,700 points in October.
They said that the investors might have thought that the political situation of the country would improve within January or February next year and then the share prices would rise again.
Net investment by the foreign investors at the DSE was Tk 228.35 crore in October.
The share of overseas investors to the bourse’s
turnover was Tk 408.15 crore in November while it was Tk 305.35 crore in October.
On September this year, overseas investors bought shares worth Tk 167.54 crore while sold shares worth Tk 82.90 crore.
In August, net investment by foreign traders was Tk 155.40 crore as they bought shares worth Tk 220.35 crore against the sales of shares worth Tk 64.95 crore.
The DSEX declined to 3,771.68 on October 20 which was lowest after 3,757.99 points on May 29.
Amid a fall in share prices, net foreign investment increased to Tk 336.59 crore in June which was the highest in the DSE history.
Foreign investors in June bought shares worth Tk 339.49 crore and sold shares worth Tk 58.30 crore with the total turnover standing at Tk 453.21 crore.
Foreign investors in July bought shares worth Tk 257.01 crore and sold shares worth Tk 68.47 crore.
It has been observed that foreign investors increase their participation on the trading floor when they find share prices lucrative and reduce their participation when share prices up, a senior official of a merchant bank said.
The previous highest monthly net investment by overseas investors at the DSE was Tk 251 crore in July 2007.
-With New Age input
