Net foreign investment in the Dhaka stock market increased 34 times to a record Tk 426 crore year-on-year in September.

Favourable economic factors, political stability and a positive market outlook encouraged foreign investors to inject money into local securities, stockbrokers who deal with portfolio investment said.

Aggressive overseas marketing by the local stockbrokers also attracted foreign investors to the Dhaka stock market.

In September, overseas investors bought shares worth Tk 589.60 crore and sold stocks worth Tk 163.35 crore, showing a 403 percent rise in net investment compared to the same period last year, according to data from the Dhaka Stock Exchange.

“A year ago, foreign investors adopted a wait-and-see approach due to political uncertainty over the national polls. But this year, the situation in the political arena is almost stable,” said Md Saifuddin, managing director of IDLC Securities.

Foreign fund managers do not see any political volatility in near future, he said.

The country's efforts to strengthen regional relationship are also giving added confidence to the investors, Saifuddin said.