• Thursday, Jan 20, 2022
  • Last Update : 02:32 am

Foreign portfolio investment falls 16% in August

  • Published at 06:15 pm September 1st, 2013
Foreign portfolio investment falls 16% in August

Foreign investment on equities in the Dhaka Stock Exchange (DSE) fell for the second consecutive month in August, as foreign fund managers preferred to adopt a ‘wait and see’ strategy in the present volatile market.

Net investment by foreign investors in the last month stood at Tk1.6bn, down nearly 16% over the previous month, according to the DSE.

Analysts say shrinking foreign investment does not mean that foreign investors withdrew their investment rather they preferred to stay on the sidelines for the time being.

Foreign investors bought shares worth Tk2.85bn and sold stocks worth Tk650m last month, according to DSE.

Banks were the foreign investors’ preferred sector, but non-bank financial institutions, power and energy, pharmaceuticals, multinationals, telecoms and IT also received their attention.

“Foreign fund investors remained watchful over the market that are going through correction following the rise in the past month,” said Wali Ul Islam, chief executive officer of Lanka Bangla Securities, a top brokerage firm.

The figures for net portfolio investment may rise further in coming days as the market is best for the foreign investors because of its lower prices, he said. “But political uncertainty in the run up to the election might dent confidence of the investors.” 

Managing Director of Union Capital Akter H Sannamat said shrinking portfolio investment did not mean flight of portfolio investment. “Foreign investors remained in the market and they just adopted wait and see policy temporarily due to recent rise of the market,” he said.

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