Foreign investments in the Dhaka Stock Exchange have been declining since 2018, despite efforts by the Bangladesh Securities and Exchange Commission (BSEC) to retain existing investors and attract new ones.
Global investors have been distancing themselves, citing concerns over the massive depreciation of the local currency against the US dollar and changes in policies that negatively affect listed firms. The COVID-19 pandemic and the Russian war in Ukraine have exacerbated these worries.
In March, foreign investors' turnover in the stock market reached its lowest point since August 2012, standing at Tk 87 crore, according to data from the BSEC. Foreign beneficiary owner account-holders bought shares worth Tk 45 crore and sold securities worth Tk 42 crore, resulting in a net investment of Tk 3 crore.
In February, foreign investors traded shares worth Tk 192 crore, but their net investment was a negative Tk 12 crore. In January, the turnover was Tk 174 crore, but the net foreign investment was a negative Tk 114 crore.
Since 2020, the BSEC has organized roadshows in the United Arab Emirates, the United States, Switzerland, the United Kingdom, and Japan to attract more foreign investments. However, the initiatives have yet to bring about any significant visible positive impacts.
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