Foreign investors withdrew approximately Tk 120 crore from the Bangladeshi stock market in December, selling off stakes in several large-cap and fundamentally strong companies.
According to data from the Dhaka Stock Exchange (DSE), foreign investors sold shares totaling nearly Tk 120 crore during the month, while their fresh purchases amounted to a mere Tk 60 lakh. This resulted in a significant net deficit in foreign investment by the end of the month.
Major Sell-offs and Sector Impact
The most notable decline was observed in Summit Alliance Port. Foreign ownership in the company plummeted from 3.69% in November to just 0.01% by the end of December, leading to a withdrawal of roughly Tk 38 crore.
Other major companies also saw a reduction in foreign holdings:
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City Bank PLC: Foreign ownership dropped by 0.64%, valued at approximately Tk 25 crore.
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Grameenphone: Participation decreased from 0.87% to 0.80%, a reduction of Tk 24 crore.
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Square Pharmaceuticals: A popular choice for overseas investors, it saw its foreign stake fall to 14.52%, representing a withdrawal of Tk 14 crore.
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Others: Slight declines were also recorded in BRAC Bank, Renata, Olympic Industries, and Jamuna Oil.
Conversely, a marginal increase in foreign ownership was noted in Prime Bank, LankaBangla Finance, and National Bank.
Current Market Landscape
Currently, the total volume of foreign investment in the DSE stands at approximately Tk 13,000 crore. Out of roughly 360 listed companies, foreign investors have holdings in only 132.
Top Companies by Foreign Shareholding: | Company | Foreign Ownership (%) | | :— | :— | | BRAC Bank | 36.06% | | Olympic Industries | 32.83% | | Beximco Pharmaceuticals | 27.35% | | Navana Pharmaceuticals | 19.64% |
Investor Profile
Market analysts point out that a significant portion of what is classified as “foreign investment” actually originates from Non-Resident Bangladeshis (NRBs). Aside from individual investors, major institutional players currently active in the market include the Norway Sovereign Wealth Fund and several entities based in the United Arab Emirates (UAE) and Europe.
