Dhaka, Bangladesh (BBN) – The net foreign portfolio investment (FPI) in the country’s prime bourse dropped by 84 per cent in August last over that of the previous month.
The net FPI came down to BDT 320 million in August 2017 from BDT 2.0 billion a month ago, according to the statistics from the Dhaka Stock Exchange (DSE).
In August 2017, foreigners bought shares worth BDT 4.32 billion and sold shares worth BDT 4.0 billion. That left their net investment at BDT 320 million.
On the other hand, net FPI was BDT 2.0 billion as overseas investors bought stocks worth BDT 6.25 billon and sold stocks worth BDT 4.25 billion, the DSE data showed.
The net FPI fell drastically during the period under review as overseas investors preferred to book their profits, the market operators explained.
They also said it is not possible to evaluate the foreign investment trend based on one or two months’ statistics, as they are long-term investors.
However, the net FPI jumped by more than 289 per cent or BDT 12.87 billion in the first eight months of this calendar year compared to the same period of the last year.
The net FPI rose to BDT 17.52 billion during period under review from BDT 4.45 billion in the same period of 2016, the DSE data showed.
The net overseas investments in the January-August period of 2017 stood at BDT 17.32 billion, as foreign investors bought stocks worth BDT 45.40 billon and sold stocks worth BDT 28.08 billion.
On the other hand, foreign investors bought shares worth BDT 30.51 billon and sold stocks worth BDT 26.05 billion, leaving the net investment at BDT 4.45 billion during the January- August period of 2016.
The foreign investment accounts for nearly 2.0 per cent of the premier bourse’s total market capitalisation, which stood at BDT 4.13 trillion at the close of trade on Thursday.