Dhaka stocks see 70% less foreign trades this May

Foreign investors' transactions in Bangladeshi stocks dropped by around 70% in May compared to that in the same month last year, according to the Dhaka Stock Exchange (DSE).

Besides, the foreign investors' net investment in stocks became negative in May – following a positive momentum for two months – as they sold more shares than they bought.

Earlier, in March and April this year, the foreign investors' net investment were positive as they bought more shares than they sold when the dollar market started to become stable after months of volatility.

Shares traded by foreigners in May this year amounted to around Tk110.27 crore. They bought shares worth around Tk33 crore, and sold shares worth around Tk77 crore during the month, making their net investment in the stock market negative of Tk44.14 crore, according to the DSE.

In May 2022, foreign transactions in stocks amounted to Tk365.75 crore as they bought shares worth Tk96.44 crore, and sold shares worth Tk269.31 crore. As such, the net foreign investment in stocks was negative of Tk172.85 crore.
Analysts said the dollar market has started to become stable, but foreign investors have become cautious about the upcoming general election in Bangladesh and regulatory interference in the capital market.

Moreover, the US Federal interest rate was hiked, which pulled the greenback towards the US, leading to a decrease in foreign investment in Bangladesh as well as in other countries.

Currently, there are foreign investments in the shares of Brac Bank, Beximco Pharmaceuticals, Navana Pharmaceuticals, Renata, Olympic Industries, Islami Bank, Delta Brac Housing, BSRM, Square Pharmaceuticals, and Shepherd Industries.

As of May, foreign investment decreased in Brac Bank, Beximco Pharmaceuticals, the City Bank, Grameenphone, Square Pharma, the Islami Bank, and Bangladesh Submarine Cable Company Limited.