Dhaka, Bangladesh (BBN)- Net foreign investment in Dhaka stocks fell 54 percent in October from September as overseas investor adopted ‘wait-and-see’ policy after previous month’s big investment.
 
Overseas investors bought shares worth BDT 3.02 billion and sold shares worth BDT 1.07 billion, taking their net investment to BDT 1.95 billion in October, according to statistics from Dhaka Stock Exchange (DSE).
 
In September, net foreign investment was BDT 4.26 billion, as foreign investors bought stocks worth BDT 5.89 billon and sold stocks worth BDT 1.63 billion, the DSE data showed.
 
“It’s natural that foreign investors will not be in the same buying mood after making a big investment in the previous month (September),” said a stock broker who deals with foreign investment.
 
“The foreign investors adopted a ‘wait-and-see’ policy in October as their exposure to the stock market was high in September.”
 
Also known as portfolio investment, foreign investment accounts for around 2 per cent of DSE’s total market capitalisation, which was BDT 3,343.83 billion as of Monday.
 
The foreign investors preferred power and energy sector. But non-bank financial institutions, pharmaceuticals, multinational companies, telecom and IT also caught their attention, brokers said.
 
In 2013, foreign investors bought shares worth BDT 26.52 billion and sold stocks worth BDT 7.09 billion, taking their net investment for the year to BDT 19.43 billion.

BBN/SSR/AD-06Nov14-1:15 pm (BST)