Ten listed firms make up most foreign portfolio investments

Ten local listed companies attracted the highest foreign portfolio investments due to the factors, including business management efficiencies, bright business prospects, and good corporate governances, analysts say.

Brac Bank Limited had the highest foreign shareholding of 36.72 per cent as of August this year.

However, foreign portfolio investment accounted for 4.2 per cent of Dhaka Stock Exchange’s total market capitalisation as of July, which was only 1.7 per cent in 2014.

Beximco Pharmaceuticals—one of the country’s leading drug makers—is in the second position on the list of the highest foreign shareholding companies.

The foreign investors hold 30.41 per cent of the billion-dollar market cap company. Olympic Industries—the biscuit manufacturer—came third as foreign investors made up 28.56 per cent of the total shares.

Another local drug maker Renata Limited’s foreign shareholding position is 22.77 per cent, followed by Islami Bank Bangladesh Limited 20.34 per cent, Delta Brac Housing Finance 20.09 per cent, VFS Thread Dyeing 18.30 per cent, Shepherd Industries 18.22 per cent, Bangladesh Steel Re-Rolling Mills 17.49 per cent and Aamra Networks 15.98 per cent.

“Foreign investors preferred companies having management efficiency, better business strategy, good corporate governance and ethical standards, transparency in financial statements, and bright business prospects,” said stock market analyst Abu Ahmed.

Bangladesh Securities and Exchange Commission Chairman Shibli Rubayat-Ul-Islam said the country’s capital market is giving the highest return among its peer countries. “It is the high time for foreign investors to put funds on the fast-growing capital market,” he said.

Over the last five years, though Bangladesh equity market had a surge of foreign portfolio investment, but was very insignificant among its peers. Recently, the securities regulator has been making its efforts to woo the foreign investments by organising roadshows in several countries.

In FY21, foreign investors withdrew equity investment of Tk1,870 crore from the country’s capital market, while they invested Tk2,346 crore a year ago, according to the Dhaka Stock Exchange.

Foreign transactions were Tk8,432 crore, which was 13 per cent lower than the previous year during the period.

On Thursday, Brack Bank’s share price fell more than 1 per cent to Tk 47.40, on the DSE.

Beximco Pharma’s share price declined by 0.28 per cent to Tk 245.60. Olympic Industries was listed on the Dhaka bourse in 1989, which each share of the company closed at Tk 190.50 on Thursday.

Renata’s share price stood at Tk 1439.70, followed by DBH Tk 85.40, Islami Bank Tk30, VFS Thread Dyeing Tk 25.90, Shepherd Industries Tk 19.70, Bangladesh Steel Re-Rolling Mills Tk 105.80 and Aamra Networks Tk54.40 on Thursday at dhaka bourse.