Foreign investors are leaving bour
ses fearing a devaluation of Taka against US dollar and tussle with GrameenPhone by the government. Due to selling foreign investors share the portfolio value of them are going down.
The foreign investors portfolio came down as low as Tk 110 crore in December last year and Tk 129 crore in January this year.
A number of foreign investors told Business Mirror that they sold shares as they fear devaluation of the local currency against the greenback in the coming months. However, the government has time and again ruled out the possibility of such a situation.
Investors believe that economic indicators of Bangladesh are taking a turn for the worse, which will ultimately force devaluation.
“If local currency devalues, their investment would face some losses, so they sold off their shares.” a local broker of capital market said.
It also became more daunted as tussle between Grameenphone, the stock of choice of foreign investors, and the BTRC has dented their confidence in the Bangladesh market.
On the other hand, a sudden decision change of the Bangladesh Securities and Exchange Commission to extend tenure of closed-end mutual funds also impacted their investment. So, they sold-off their stocks.
