Foreign investors pull out Tk205cr from DSE in Aug

The foreign investors have withdrawn Tk205 crore from the Dhaka Stock Exchange (DSE) in August as they booked profits from the recent record surges.

The foreigners became net sellers of Tk153 crore and buyers of Tk358 crore, making the net investment of Tk205 crore negative in August, according to the Dhaka Stock Exchange.

The figure was Tk 176 crore in the negative in July when they sold shares worth Tk227 crore and bought shares worth Tk51 crore.

The benchmark DSEX index crossed the 7,300-mark for the first time since its launch in 2013. The market continued to witness a bull-run over the last few months.

To woo foreign investments into the local stock markets, the securities regulator started a campaign abroad. As part of the drive, it already organised roadshows in Dubai in February, the United States in August, and Switzerland this month. The Bangladesh Securities and Exchange Commission (BSEC) also planned to organise more roadshows in several countries such as Russia in days to come.

The BSEC’s initiative also aimed at mobilising the bond market where Islamic Sukuk bonds have recently been launched. Despite the efforts of the regulator, still there is no sign of inflow of foreign portfolio investment to the local stock markets.

In fiscal 2020-21, foreign investors withdrew equity investment of Tk1,870 crore from the capital market, while they invested Tk2,346 crore a year ago.

According to DSE data, net foreign investment at the stock exchange slumped by Tk1,399 crore in FY20 against Tk184 crore in the previous fiscal year.

In the given year, foreign investors sold shares worth Tk 5,543 crore against their purchase of shares totaling Tk 4,144 crore.

Net investment by foreign investors at the country’s premier bourse was at an all-time high of Tk2,494 crore in the 2013-14 fiscal year.

Overseas investors’ turnover at the bourse was negative Tk52 crore in FY10, negative Tk 404 crore in FY11, Tk 529 crore in FY12, Tk1230 crore in FY13, Tk2,494 crore in FY14, and Tk1,299 crore in FY15, Tk2,268 crore in FY17, and Tk72 crore in FY18.