Volatile political situation and concerns over the next poll-time government have dejected the foreign investors, which resulted in 21.33 per cent fall in net foreign investment in the Dhaka Stock Exchange in the month of August, market operators said.
According to data released by the DSE on Sunday, foreign investors in August bought shares worth Tk 220.35 crore and sold shares worth Tk 64.95 crore with the total turnover standing at Tk 285.31 core.
‘Foreign investors are probably observing the political situation before making the next move, which might be the reason behind lesser participation of foreign investors on the trading floor,’ Union Capital managing director Akhter Hossain Sannamat told New Age.
‘Increase in shares prices might be another reason behind the declining foreign investment as perhaps they did not find lucrative prices to buy shares,’ he said.
Along with increased prices of shares, the volatile political situation and concerns over the next poll-time government might have made the foreign investors worried, IDLC Investments managing director Moniruzzaman told New Age.
In July, foreign investors bought shares worth Tk 257.01 crore and sold stocks worth Tk 68.47 crore.
In June, huge fall in shares prices saw net foreign investment jump to Tk 336.59 crore, the highest in DSE’s history.
The 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 core.
The previous highest monthly net investment by the overseas investors was Tk 251 crore in July 2007.
In May, net foreign investment was Tk 231.58 crore, which was the highest since Tk 245.09 crore recorded in July 2009.
-With New Age input
