Foreign funds in DSE keep falling
Foreign investors' selling spree continued in November in anticipation of political tension ahead of the upcoming national election.
Last month, they purchased shares worth Tk 323.84 crore and sold shares worth Tk 346.35 crore, meaning the net investment was Tk 22.51 crore in the negative.
Their net investment was Tk 201.28 crore in the negative in the previous month, according to data from the premier bourse.
Foreign investors normally decide to offload their portfolio if they sense any political turmoil looming or there might be a big shock to the economy, said a top official of a brokerage house requesting anonymity.
“Since the Bangladesh economy is cruising along, it is the political uncertainty that is the reason behind the sell-off,” he added.
When it comes to Bangladesh, foreign investors are mostly concerned about the politics, said another top official of a brokerage house that handles portfolio investment.
“So, ahead of the polls a big impact can be felt, which is not the case in other countries.” The reason behind the preoccupation with the political scenario is the instability seen during the run-up to the last couple of national elections, he said, adding that foreign investment will pick up if the political environment remains calm after the polls.
Another reason behind the sell-off is the depreciation of the taka, according to market insiders.
Foreign investors are now getting Tk 3 less than what they used to get a year ago against every dollar.
The exchange rate for dollar is Tk 83.90, in contrast to Tk 80.90 a year ago, according to data from the Bangladesh Bank.
