‘Peaceful political situation’ spurs portfolio investment in Q4: MCCI

Dhaka,  Thu,  24 August 2017
Published : 09 Aug 2017, 21:14:36

‘Peaceful political situation’ spurs portfolio investment in Q4: MCCI

FE Report

The country's both the stock exchanges witnessed a sharp rise during April-June (Q4), 2017 following investors' increased participation during the period, according to an economic review of Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI).

"The country's capital market marked a significant increase in the participation by investors and both Dhaka and Chittagong Stock Exchanges witnessed a sharp rise both in the key index and turnover," the MCCI said.

On 29 June 2017, the last trading day of FY17, the key index of Dhaka Stock Exchange, DSEX, rose by 0.17 per cent and the shariah-based index, DSES, rose by 0.44 per cent, whereas the blue chip index, DS30, lost 0.16 points.

"Also, the Chittagong Stock Exchange (CSE) ended higher with its Selective Categories Index (CSCX), advancing 13.29 points," the MCCI said.

The MCCI mentioned the political situation as 'peaceful' while describing the increased investments in foreign portfolios.

"Net foreign investment in the DSE marked an increase, encouraged by positive macroeconomic indicators coupled with declining interest rate, stable exchange rate and a peaceful political situation."

"Month-wise, net foreign investment at DSE in April 2017 was Tk.700 million, Tk.1.54 billion in May 2017, and Tk.3.90 billion in June 2017."

MCCI said, banks are the foreign investors' preferred sector, but non-bank financial institutions, power and energy, pharmaceuticals, multinationals, telecoms and IT also drew their attention.

Investors include Morgan Stanley, JPMorgan, Goldman Sachs and BlackRock, among others. Known as portfolio investment, total foreign investment accounted for nearly 2.0 per cent of DSE's total market capitalisation that stood at Tk.3,801 billion at the close of trade on 29 June 2017, the last trading day of FY17, MCCI added.

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