Net foreign investment in Dhaka stocks rose 69 percent year-on-year in the first quarter this year.
Overseas investors bought shares worth Tk 935.47 crore and sold stocks worth Tk 439.10 crore, taking their net investment to Tk 496.37 crore at the end of March, according to data from Dhaka Stock Exchange.
The net foreign investment in the first quarter of 2013 was Tk 293.03 crore, after foreign investors bought shares worth Tk 440.33 crore and sold shares worth Tk 147.30 crore during the period.
Foreign investors were mostly focused on fundamentally strong securities, which were still lucrative for investment, said a manager at a local stockbroker that deals with foreign investment.
“By nature the foreign investors are long-term investors, and the first quarter was an ideal time for them to take positions in the market,” he said.
Net foreign investment, however, fell around 19 percent in March compared to February, as the investors adjusted their portfolios.
Net investment in January rose to a seven-month high on the back of easing political tension and favourable macro indicators, but later started to go slow.
“Overseas investors still have enough interest in our markets,” the manager added.
Also known as portfolio investment, foreign investment accounts for around 1 percent of DSE's total market capitalisation, which was Tk 290,170 crore yesterday.