Dhaka, Bangladesh (BBN) – Foreign investors have pumped BDT 5.87 billion into Bangladesh’s stocks in the first nine months of the current calendar year as they took advantage of falling share prices to increase their holdings in local firms.
The overseas investors bought shares worth BDT 34.92 billion, while they sold stocks of BDT 29.05 billion in nine months for January-September period of 2016, taking their net position at BDT 5.87 billion, according to statistics available with the Dhaka Stock Exchange (DSE).
In 2015 for January to September, the foreign investors bought shares worth BDT 27.75 billon, while they sold shares worth BDT 26.93 billion, taking the net position at BDT 818 million.
So, year-on-year net foreign investment in DSE soared 617 percent for January to September, 2016 period to stand at BDT 5.87 billion, which was BDT 818 million in the same period in 2015, the DSE data showed.
A local stockbroker, who deals with foreign investors, said the foreign fund managers see the Bangladesh stock market as one with potential among the emerging markets.
“Foreign investor injected fresh funds amid positive speculations as the market performed comparatively better in recent months,” he said.
Banks shares were the top choice of foreign investors, who also seemed interested in power and energy, non-banking financial institutions, telecom, pharmaceuticals, multinational companies and IT.
Also known as portfolio investment, foreign investment accounts for less than 2.0 percent of the premier bourse’s total market capitalisation, which stood at BDT 3,280.25 billion as on Sunday.