The Financial Express

Foreign investment in bond up, equity negative in FY20

| Updated: January 06, 2021 08:52:07

Evaly and Fianancial Express Evaly and Fianancial Express
Picture used for representational purpose- Collected Picture used for representational purpose- Collected

Foreign or non-resident investment in debt securities of Bangladesh market increased in the last fiscal year while declined in equity securities in the last fiscal year.

Bangladesh Bank unveiled the latest statistics of portfolio investment in the country by non-resident last month. It showed that the stock position of total portfolio investment in Bangladesh was recorded at US$ 3.92 billion million at the end of FY20.

Of the total stock position, investment in debt securities or bond was stood at $1.63 billion at the end of June 2020 while the amount for equity investment was $2.29 billion.

Central bank statistics also showed that, portfolio investment in debt securities in net estimate stood at $139.75 million in the last fiscal year, recording 9.30 per cent growth over the previous fiscal year of FY19.

Debt securities includes: Wage Earner Development Bond, US Dollar Premium Bond, US Dollar Investment Bond, Bangladesh Government Treasury Bond and Corporate Bond issued by Banglalink Digital Communications Limited.

At the same time, portfolio investment in equity securities turned into negative value of $792.51 million in FY20 as it declined by 26.50 per cent over the previous fiscal year.

Thus, total portfolio investment actually declined by $652.76 million or 20 per cent in the last fiscal year.

Bangladesh Bank defined the portfolio investment as an ‘entry of funds into a country by non-resident individual or institute to make investment in the country's stock and bond markets.’

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