Foreign investors' participation in the stock market nearly doubled in November compared to the previous month, as price indices rebounded after the central bank's October action against overexposed banks.
The monthly business turnover of the foreign portfolio was set at 1,253.43 crores last month against 642 crores in October, according to data from the Dhaka stock exchange.
The net position of the foreign portfolio jumped to 19 crores Tk in November, which was 151.72 crt TK in the negative one month earlier.
The foreign investment portfolio plunged into negative territory in October due to mounting pressure on sales after the central bank fined seven banks for overexposure to the capital market, said a senior officer of the DSE.
Overseas investors began making new investments in November, taking advantage of the opportunity to buy low-priced shares, he said.
In November, foreign investors bought shares in the amount of 636.19 Taiwanese crores and sold shares of 617 crores of Tk.
"Foreign investors have remained active in the stock market throughout the year, with the country's macroeconomic outlook being positive," said Mon Monruzzaman, managing director of IDLC Investment.
Strong GDP growth, control of inflation and rising credit growth to the private sector have attracted foreign investors, he added.
November 's activities bring the net position of the foreign portfolio during the first 11 months of the year to 1.642 crores Tk, up 72% from the same month of the previous year.
Foreign investors will continue to invest in equities in the coming days in anticipation of stable economic growth, the EHR official said.
In addition, the imminent revenue reported by financial institutions towards the end of the year will stimulate investor activity in the market, he added.
The daily turnover of the main stock exchange yesterday reached its lowest level in six months, at 432.86 Tk crores, due to the free fall of bank stocks.
The benchmark, DSEX, lost 43.80 points to close at 6,204.43. The session started on a bullish note but witnessed a free fall due to the correction in the heavyweight sectors such as the bank, said UCB Capital Management in its daily market analysis.
The bank shares accounted for 17.08% of the day's business figure, according to the report. After banks, telecom shares fell by 0.61%.
Simtex Industries was the most traded stock of the day with a turnover of 13.48 crores Tk, followed by Thai Bd at 12.12 crore Tk.