Net foreign investment in Dhaka stocks fell about 57 percent in February from the previous month, as investors adjusted their portfolios.
Overseas investors bought shares worth Tk 327.05 crore and sold Tk 206.01 crore of shares, taking their net investment to Tk 121.04 crore in February, according to data from Dhaka Stock Exchange.
“Net foreign investment in January was higher than in December and so, it was usual that they will adjust their investment and follow a wait-and-see policy in the next month,” said Md Saifuddin, managing director of IDLC Securities, a leading stockbroker that deals with foreign investment.
In January, net foreign investment in the stockmarket rose to a seven-month high of Tk 278.37 crore, registering a 328 percent rise over the previous month, according to DSE data.
“The fact is that overseas investors still have enough interest in our markets. The recent demutualisation of the stock exchanges and signs of political stability increased their confidence,” he said. Previously, foreign investors focused on only a few sectors, but they have now widened their focus to other sectors as well, he added.
Also known as portfolio investment, foreign investment accounts for around 1 percent of DSE's total market capitalisation, which was Tk 291,765 crore yesterday.
Banks were initially the foreign investors' preferred sector, but non-bank financial institutions, power and energy, pharmaceuticals, multinationals, telecoms and IT also caught their attention.
In 2013, foreign investors bought shares worth Tk 2,652.48 crore and sold shares worth Tk 709.58 crore, to yield a net investment of Tk 1,942.9 crore, according to DSE.