A view of Dhaka Stock Exchange. Photo: BBN

Dhaka, Bangladesh (BBN)– Net foreign portfolio investment (FPI) in Dhaka Stock Exchange (DSE) marked a 450 per cent rise month-on-month in September as overseas investors injected fresh funds.

Market insiders said positive macroeconomic indicators and a stable political scenario boosted the foreign investors’ confidence to increase their positions in the Bangladesh capital market.

Foreign investors bought shares worth BDT 5.61 billion and sold shares worth BDT 3.86 billion in September 2017, taking their net investment to BDT 1.75 billion, according to statistics from the Dhaka Stock Exchange (DSE).

In August 2017, net foreign investment was only BDT 320 million as overseas investors bought stocks of BDT 4.32 billon and sold stocks worth BDT 4.0 billion.

Net overseas investment in the first nine months of 2017 stood at BDT 17.75 billion, as foreign investors bought stocks of BDT 51.01 billon and sold stocks worth BDT 33.26 billion.

Between January and September 2016, foreign investors bought shares worth BDT 34.92 billon and sold stocks worth BDT 29.04 billion, taking net investment to BDT 5.87 billion, the DSE data shows.

Meanwhile, DSEX, the benchmark index of the premier bourse, increased 1,057 points or 21 percent in January-September period of 2017.

Also known as portfolio investment, foreign investment accounts for around only 1.0 percent of the premier bourse’s total market capitalisation, which stood at BDT 4,083 billion at the end of Tuesday’s trading.

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