Despite a modest recovery in indices, Bangladesh’s capital market continued to struggle with declining investor confidence as the average turnover fell by more than 7 percent, according to the Dhaka Stock Exchange’s (DSE) weekly market review.
The DSE said average daily turnover dropped to Tk 358 crore at the end of the week from Tk 387 crore at the beginning, marking a 7.41 percent decline and reflecting persistent investor apathy.
After weeks of volatility, the market managed to post a marginal overall gain. The benchmark DSEX index rose by 52 points, while the Shariah-based DSES advanced 7 points and the blue-chip DS30 index gained 22 points.
However, year-on-year comparisons painted a weaker picture. Compared to the same period in 2024, the DSEX is still down 6 percent, the DS30 2 percent and the DSES 13 percent, indicating that the broader market has yet to recover from last year’s losses.
Prolonged losses have continued to push investors away from the market. Data from the Central Depository Bangladesh Limited (CDBL) showed that the number of active Beneficiary Owners (BO) accounts fell to 1,639,843 as of December 24 from 1,684,668 on July 1, the first day of the current fiscal year.
This means nearly 45,000 BO accounts have exited the market during the first half of FY2025–26.
Investors blamed sustained price erosion and mounting losses for their loss of interest.
“Investors thought 2024 was the worst year for them. But by the end of 2025, it is clear that the market situation is even worse than last year,” said retail investor Tareq Hossain.
Another investor, Malek, criticised the pace of reforms, saying investors’ concerns were largely ignored.
“There has not been a single new IPO in a year. Large companies were fined as part of market reforms, but the commission never clarified whether those penalties were realised or whether the money was used for capital market development,” he said.
Investment Corporation of Bangladesh (ICB) Chairman Prof Abu Ahmed said the overall weakness in the economy had spilled over into the capital market, making comprehensive reforms unavoidable.
“When I took charge, ICB was in a very fragile state. With government support, we are gradually trying to stabilise and revitalise the institution. This cannot be done overnight,” he said, adding that appropriate steps after the election could help the market rebound.
During the week, prices rose for most companies on the DSE, with 241 issues advancing against 101 decliners, while 44 remained unchanged.
Yet sector-wise performance was mixed, as share prices increased in only five of the 21 sectors. Banking stocks rebounded strongly after earlier losses, with the sector posting a 23 percent price gain and a 13 percent rise in turnover.
Of the 36 listed banks, prices rose for 21, fell for eight and remained unchanged for seven.
At the Chittagong Stock Exchange (CSE), the overall CASPI index gained 18 points, although declining issues outnumbered gainers. Prices fell for 128 companies, rose for 103 and remained unchanged for 24.
Bonds and mutual funds delivered the highest returns in both markets during the week. On the DSE, the SIBL Mudaraba Perpetual Bond topped the return chart, while on the CSE the 1st Scheme of Reliance Mutual Fund emerged as the best performer.