The stock market trend is still prevalent despite the diversified attempts to boost it. This week Dhaka Stock Exchange saw transaction of only Tk 3 billion and those concerned are blaming the foreign investors for the current condition.
In September this year, foreign investors brought shares worth over Tk 2.5 billion and sold shares worth over Tk 3 billion against it. Foreigners sold over Tk 300 million worth of shares that month.
In August the figure stood at Tk 2.97 billion worth of shares sold against shares of Tk 1.76 billion.
“When foreign investors sell shares, it has a negative effect on the local investors,” said AB Mirza Azizul Islam, former financial adviser to the emergency care taker regime of 2007.
“Because the local investors are not increasing investments, the foreign investors are not buying shares,” he added.
He said that that a big investment will ensure the index going up which in turn will boost the stock market. “Regular investors buy shares based on the index. Hence it must go up which will also ensure the trust of the investors.”
In a bid to boost the falling share market, Finance Minister AHM Mustafa Kamal met with the stakeholders.
It was decided that a special committee will be formulated under the Bangladesh Securities and Exchange Commission (BSEC). Following the decision, the central bank issued a circular so that the banks lend money to the stock market but to no avail.
Market analysis on Thursday (Oct 3) showed the broad index, DSEX closed in green at 4937.82 points with a gain of 1.44 points or 0.02 percent from the previous day.
In addition, the two selective indices, DSE30 declined slightly by 3.26 points while the Shariah index, DSES increased by 0.05 points to stand at 1755.23 points and 1136.36 points respectively.
On the DSE trading floor, a total number of 107,136 trades were executed in Thursday’s trading session with a trading volume of 126.06 million securities generating a turnover of Taka 3,286.39 million.
Gainers took a moderate lead over the losers as out of 354 issues traded, 173 securities gained price while 131 declined and 50 remained unchanged.
The market-cap of the DSE also fell slightly to Taka 3,727 billion on Thursday, from Taka 3,730 billion in the previous session.
Foreign investors have reportedly been withdrawing from the stock market for the past few months. From March to September this year, foreigners sold more than Tk 120 million worth of shares. The data says that in August, sold over Tk 1 billion against what they bought.
In addition, foreigners bought shares worth Tk 3 billion from the stock market in July and sold shares worth Tk 4.78 billion against that. In June, they bought shares worth Tk 2.95 billion which generated Tk 3.05 billion. In May, the figure stood at Tk 650 million against what they bought, Tk 1.54 billion in April and Tk 1.24 billion more than what they bought in March this year.
