After the ouster of Awami League president and former Prime Minister of Bangladesh, Sheikh Hasina, there has been a major change in foreign investment in the country’s stock market. In the first 15 days of August, the month of the fall of the government, the trading of foreign investors in the Dhaka Stock Exchange (DSE) increased almost 6 times compared to the previous year. As a whole month, foreign share trading is likely to exceed any single month of any period. This information is known from related sources.
According to the data of DSE, in the first half of August, shares of foreign investors were traded in the main capital markets of the country to the tune of Tk 404 crore 82 lakh. DSE at the same time last year and 2023
Market people say, Nobel laureate professor Dr. With the new interim government headed by Muhammad Yunus assuming office, market confidence among foreign investors has increased significantly. As a result, they have increased the amount of investment in the stock market.
Sources say that the turnover of foreign investors in the financial year 2018-19 was 8 thousand 91 crores. In the next financial year, this figure increased to 9664 crores. But in subsequent financial years, foreign investors’ transactions were on the decline. In the financial year 2022-23 it came down to two thousand 954 crores. Even till the first half of August, foreign shares were traded at Tk 262 crore. Which is the lowest in the previous five fiscal years.
Not only the foreign investors, the resignation of Sheikh Hasina has increased confidence among the domestic investors as well. According to the data of Central Depository Bangladesh Limited (CDBL), there were 3 lakh 11 thousand 593 unfunded BO accounts in the stock market on August 1. But after the interim government took over, the number of cashless BO accounts has come down. On the last working day of August, till August 29, the number of BO accounts decreased to 3 lakh 9 thousand 434. In other words, among these reduced accounts, the transactions were made in August.
Market analysts say that confidence among foreigners about the capital market has increased since the new government took over; banking sector reforms; Investors have regained confidence in the stock market due to stability in the foreign exchange market and rising share prices of quality companies.
Meanwhile, many blame the imposition of floor price for the instability of the capital market and the decrease in foreign investment. According to them, the artificial control of share prices by BSEC has increased volatility in the stock market of the country. Recently, the floor price of all remaining companies was withdrawn except for two companies.
