Overseas investment in DSE drops by 48pc in FY15


Net overseas investment in the Dhaka Stock Exchange fell by 48 per cent or Tk 1,193.83 crore in the just-concluded financial year 2014-15 compared with the FY14, DSE data showed.
In the FY14, net foreign investment in the country’s premier bourse was Tk 2,493.67 crore whereas the amount turned Tk 1,299.83 crore in the FY15.
According to a DSE data release on Tuesday, overseas investors’ participation at the bourse, however, increased to Tk 6,991.29 crore compared with that of Tk 5,089.58 crore in the previous year.
The overseas investors in the FY15 bought shares worth Tk 4,145.56 crore against Tk 2,845.73 crore share sales during the period.
In the FY14, the overseas investors bought shares worth Tk 3,791.63 crore against their share sales of Tk 1,297.95 crore, the DSE data showed.
‘As overseas investors are not centric to any specific market, they might have found better prospect in other market. That’s why their net investment in the DSE might have declined during the last fiscal year,’ said former Bangladesh Merchant Bankers Association president Mohammad A Hafiz, while talking to New Age.
There is a pressure by the central bank on the banks to reduce investments in the market and that might be another reason of the overseas investors’ shakiness over the capital market, Hafiz said.
He, however, expects the foreign investors’ increased participation in the country’s stock exchanges in the coming days.
‘Although, I have no exact data of overseas investment, prolonged unstable situation during January-March period this year might be a reason behind their (overseas investors) reduced investment in the DSE during the just-concluded fiscal year,’ EBL Securities managing director Saidur Rahman told New Age.
Rahman also said that profit-taking from some selective shares after reaching to a satisfactory level might be another reason behind the fall.
Considering year-on-year data, foreign investors participation at the DSE increased to an all-time high in 2014 as their turnover at the bourse rose by 84.56 per cent during the year compared with the previous year.
In 2014, the overseas investors bought shares worth Tk 4,406 crore against their Tk 1,798 crore sales, which were Tk 2,652 crore and Tk 709 crore respectively in 2013.
Foreign investors’ turnover at the bourse was Tk 6,205 crore last year compared with that of Tk 3,362 crore during 2013.
On the other hand, considering month-wise investment, net foreign investment in the bourse hit an all-time high of Tk 572.08 crore in April 2014 as they bought shares worth Tk 876.43 crore and sold shares worth Tk 304.35 crore.
The earlier highest single-month net foreign investment in the bourse was Tk 339.49 crore in June 2013 when the overseas investors 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.
Source: New Age


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