Foreign investment in DSE soars in JanuaryStaff Correspondent
Net overseas investment at the Dhaka Stock Exchange increased by 328 per cent in January compared with the previous month as low priced stocks lured them amid formation of the new government.
The net foreign investment in January was the highest after Tk 339.49 crore in June last year, which was all time high foreign investment in the bourse.
Net foreign investment in the DSE increased to Tk 278.36 crore in January which was Tk 64.94 crore in December last year.
Overseas investors bought shares worth Tk 403.15 crore in January against their sale of Tk 124.78 crore, while they bought shares worth Tk 112.79 crore in December against their sale of shares worth Tk 47.84 crore.
Market operators said that foreign investment in the stock market increased sharply as they found the shares in the market cheap which lured them to invest.
They also said that formation of another Awami League-led government was another reason behind the increased participation of overseas investors on the trading floor.
Anticipation of another bubble in the market also attracted them, they said.
In 2009-10, DGEN, the old benchmark general index of Dhaka Stock Exchange, increased abnormally after the formation of AL-led government. The same thing happened in 1996. On both occasions, the bubble burst.
‘Low priced shares in the stock market in few sectors attracted overseas investors,’ IDLC Investments managing director Moniruzzaman told New Age.
‘Eased political prospect after the formation of the government was another reason for their increased investment in the capital market as they expected rise in the market,’ he said.
In September last 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.
Foreign Investment increased to Tk 1,942.89 crore in 2013 from Tk 792.59 crore in 2012.
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