Some eight listed companies having good fundamentals saw a decline in stakes held by foreigners in the last six to twelve months.
The amount of shares held by foreigners declined ranging between 0.64 per cent and 6.32 per cent in those companies during June 30, 2020 to June 30, 2021.
Some insiders said the regulatory decision regarding the closure of trading after the outbreak of COVID-19 was one of the major reasons behind the decline observed in foreign stakes.
"The market remained closed for 66 days till May 30, 2020. The decision of market closure was not acceptable to foreigners," said the managing director of a leading merchant bank.
He said the introduction of floor prices for listed securities also played a role behind the decline observed in foreign stakes.
"After taking charge, the incumbent commission opened trading on May 31, 2020, and the market still remains open amid the ongoing lockdown. It was a good decision," said the managing director on anonymity.
The securities regulator has lifted the floor prices earlier introduced to contain the free fall of stock prices amid lockdown.
The companies which saw a decline in foreign stakes include BRAC Bank, British American Tobacco Bangladesh Company (BATBC), Beximco, Beximco Pharmaceuticals, Square Pharmaceuticals, The City Bank, and Singer Bangladesh.
On the other hand, the quantity of shares held by foreigners rose marginally in IDLC Finance and Delta Brac Housing Finance Corporation.
The amount of shares held by foreigners has almost remained unchanged at Renata in the last 12 months.
At the end of December 2020, foreign shareholders held 9.46 per cent shares at IDLC Finance.
Their stakes rose to 12.11 per cent as of April 30, 2021, and the amount stood at 11.85 per cent as of May 31, 2021.
As a result, the amount of shares held by foreigners at the IDLC Finance rose 2.21 per cent in five months as of May 31, 2021.
Foreign shareholders held 39.57 per cent shares at BRAC Bank as of December 31, 2020.
Later, the amount of foreign stakes declined to 37.93 per cent as May 31, 2021 and the amount stood at 37.71 per cent as on June 30, 2021.
As a result, the amount of shares held by foreigners at BRAC Bank declined 1.86 per cent in the last six months.
Foreign shareholders held 34.44 per cent shares at Beximco Pharmaceuticals as of June 30, 2020, and later the amount declined to 30.52 per cent at the end of May 2021.
At the end of June 2021, the amount of shares held by foreigners stood at 30.55 per cent.
As a result, the foreigners' shares declined 3.89 per cent at Beximco Pharmaceuticals in the last 12 months.
The amount of shares held by foreigners at Beximco declined 6.32 per cent declined in 11 months as of May 31, 2021.
At the end of June 2020, the amount of foreign stakes stood at 7.79 per cent at Beximco.
Later, the amount of their shares held by foreigners came down to 1.49 per cent as of April 30 and the amount stood at 1.47 per cent as of May 31, 2021.
The amount of shares held by foreigners declined marginally at Square Pharmaceuticals in the last 12 months.
Foreigners held 18.61 per cent shares at Square Pharmaceuticals as of June 30, 2020.
At the end of June 30, 2021, the amount of foreign stakes came down to 15.27 per cent.
As a result, the amount of shares held by foreigners declined 3.34 per cent at Square Pharmaceuticals in the last one year.
Foreign shareholders held 11.42 per cent shares at British American Tobacco Bangladesh Company (BATBC) as of December 31, 2020.
Later, their stakes declined to 9.30 per cent as of May 31 and later the amount also came down to 9.15 per cent by June 30, 2021.
The amount of shares held by foreigners declined 2.27 per cent at BATBC in the last six months.
During the period, the amount of shares held by general shareholders at BATBC rose to 5.33 per cent as of June 30, 2021.
The amount of foreign stakes has almost remained static at Renata in the last 12 months.
Foreign shareholders held 22.76 per cent shares at Renata as on June 30, 2020.
Later, their stakes declined marginally to 22.74 per cent as of May 31, 2021, and this amount remained unchanged as of June 30, 2021.
The amount of foreign stakes declined only 0.02 per cent at Renata in the last 12 months.
The foreigners also hold a significant amount of shares at Delta Brac Housing Finance Corporation (DBH). Their stakes at the company rose marginally in the last five months.
Foreigners held 21.94 per cent shares at DBH as of December 30, 2020, and 21.89 per cent as April 30, 2021.
Later, the foreign stakes at the company rose to 22.08 by May 31, 2021, with a rise of 0.14 per cent from the amount observed in December last.
Foreign shareholders held 4.23 per cent shares at The City Bank as of December 31, 2020.
Later, the foreign stakes at the company declined to 3.03 per cent at the end of June 2021.
As a result, the amount of foreign stakes at The City Bank declined 1.2 per cent in the last six months.
The amount of shares held by foreigners declined marginally at Singer Bangladesh in the last six months.
Foreigners held 6.81 per cent at Singer as on December 31, 2020. Later, the amount declined to 6.17 per cent as of June 30, 2021.
The amount of shares held by foreigners declined 0.64 per cent at Singer Bangladesh in six months.
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