Foreign investors' participation in the stock market almost doubled in November from a month earlier as price indices rebounded following the central bank's action in October against overexposed banks.

The monthly turnover of foreign portfolio stood at Tk 1,253.43 crore last month in contrast to Tk 642 crore in October, according to data from the Dhaka Stock Exchange.

The net position of foreign portfolio surged to Tk 19 crore in November, which was Tk 151.72 crore in the negative a month earlier.

The foreign investment portfolio plunged into the negative territory in October due to mounting sell pressure after the central bank fined seven banks for overexposure to the capital market, said a senior executive of the DSE.

Overseas investors started to make fresh investment in November, taking the opportunity of purchasing shares at low prices, he said.

In November, foreign investors bought shares amounting to Tk 636.19 crore and sold shares of Tk 617 crore.

“Foreign investors remained active in the stockmarket throughout the year as the macroeconomic outlook of the country was positive,” said Md Moniruzzaman, managing director of IDLC Investment.

The high GDP growth, cool inflation and rising private sector credit growth lured in overseas investors, he added.

November's activities take the net position of foreign portfolio in the first 11 months of the year to Tk 1,642 crore, up 72 percent from the same month a year ago.

Foreign investors will continue to invest in stocks in the coming days in anticipation of steady economic growth, the DSE official said.

Moreover, the impending earnings reporting by financial institutions towards the end of the year will boost investor activities in the market, he added.

DAILY MARKET

The daily turnover at the prime bourse yesterday hit a six-month low at Tk 432.86 crore due to the free fall of banking stocks.

The benchmark index, DSEX, shed 43.80 points to close at 6,204.43. The session started on a bullish note but witnessed a free fall because of correction in the heavyweight sectors such as banking, said UCB Capital Management in its daily market analysis.

Banking stocks accounted for 17.08 percent of the day's turnover, it said. After banks, telecom stocks declined 0.61 percent.

Simtex Industries was the day's highest traded stock with a turnover of Tk 13.48 crore, followed by Bd Thai at Tk 12.12 crore.