Bangladesh
5 years ago

Portfolio investments see 26pc fall in 2018

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Share transactions in portfolio investments declined 26 per cent in 2018 compared to the previous year.

According to information of Dhaka Stock Exchange (DSE), the portfolio investments witnessed transactions worth above Tk 95.85 billion in 2018.

The portfolio investment is the entry of funds into a country where foreigners make purchases in the country's stock and bond markets.

The DSE officials, however, said the amount of share transactions executed in 2018 was the second highest since inception of the premier bourse.

The market operators said foreign portfolio investments declined in 2018 due to some reasons including fluctuations of foreign currency rate.

The transactions executed in foreign portfolios captured 6.32 per cent of the total turnover observed in 2018 on the premier bourse.

The amount of share transaction in foreign portfolios was above Tk 114.47 billion in 2017.

As a result, the transactions in foreign portfolios declined 26 per cent or Tk 18.62 billion in 2018 compared to previous year.

In 2018, the amount of selling shares was greater than that of purchasing shares by the portfolio investors.

During the period, the net position in foreign portfolios marginally declined compared to previous year.

During the year, the foreign portfolio investors purchased shares worth above Tk 44.96 billion.

On the other hand, they sold shares worth above Tk 50.89 billion in 2018.

Khairul Bashar Abu Taher Mohammad, chief executive officer (CEO) of MTB Capital, said foreign portfolio investors operate across the world time to time following better investment returns.

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