After nearly a year of turmoil, Bangladesh’s capital market is showing clear signs of a robust recovery. Over the past week, key indicators such as the price index and transaction volumes have risen significantly, signaling renewed investor confidence. Most share prices have climbed, and small investors-many of whom had distanced themselves during the market’s decline-are once again flocking to brokerage houses in Motijheel to check their accounts and consider new investments.
This resurgence follows a series of positive developments after the student-public uprising and the formation of the interim government led by Chief Advisor Dr. Muhammad Yunus. Several initiatives to rejuvenate the capital market have been implemented, including budgetary measures aimed at market development, economic reforms, and the arrest of major market manipulators.
Insiders allege that during the previous government, a powerful syndicate, allegedly backed by influential figures, controlled the stock market. This syndicate manipulated share prices for years, causing substantial losses to ordinary investors. However, many members of this syndicate have since been arrested or fled abroad, leaving the market free from their influence for the time being.
Immediately following the political upheaval last August, the stock market experienced a brief surge, with the Dhaka Stock Exchange’s main index rising by 786 points in just four days. But subsequent global uncertainties-including escalating geopolitical conflicts and additional tariffs imposed by the US-along with rising interest rates, shifted investor preference toward safer instruments such as treasury bonds, creating a liquidity crunch and dampening confidence in equities.
Now, as inflation rates begin to fall and savings bond interest rates decline, liquidity is returning to the stock market. Experts suggest that this trend will continue, provided no new syndicate emerges to manipulate prices again.
Despite the positive momentum, analysts urge investors to exercise caution and make well-informed decisions. On Thursday, the DSEX index rose by 32 points, closing at 5,068 points. The DSE Shariah Index gained 6 points to 1,100, and the DSE-30 index, which tracks 30 leading companies, increased by 14 points to 1,908.
In a recent development to strengthen the market further, the Securities and Exchange Commission held a high-level meeting with industry advisors to expedite the inclusion of government-owned foreign and multinational companies into the capital market via direct listings. Discussions centered on accelerating the process for these companies to be publicly listed, which is expected to deepen and broaden the market.
A seasoned capital market analyst welcomed the initiative, highlighting a key provision in this year’s national budget that increases the corporate tax differential between listed and non-listed companies-a move anticipated to encourage more firms to enter the stock market. “If this policy is finalized and implemented, it is expected that many quality companies will seek listing, further strengthening the capital market,” he said.
With these ongoing reforms, Bangladesh’s capital market appears poised for a sustained turnaround, signaling better days ahead for investors and the broader economy alike.