Foreign investors' turnover in stocks hits decade-low

Foreign investors' turnover in the stock market plunged to a decade-low position of Tk 87 crore last March because of a confidence crisis caused by the introduction of the floor price in the market.

In the month, foreign beneficiary owners account holders bought shares worth Tk 45 crore and sold shares worth Tk 42 crore.

Earlier, in August of 2012, turnover of the foreign investors was Tk 68 crore, the lowest until March this year.

In last February, the foreign investors transacted shares worth Tk 192 crore while their net investment was negative of Tk 12 crore.

A top official of a stock brokerage firm said the foreign investors are losing confidence as they prefer liquid securities but the floor price makes the whole market illiquid.

On the other hand, depreciation of the local currency against the US dollar is also a cause of their confidence drop, he added.