After weeks of muted activity, Bangladesh’s capital market is showing signs of renewed optimism. On June 1, 2025, the Dhaka Stock Exchange (DSE) witnessed a notable upswing as the DSEX index climbed 30 points, closing at 4,668. This marks a 0.65% gain and builds on earlier increases totaling over 52 points across the two previous sessions. Market analysts attribute this positive trend to growing investor confidence ahead of the national budget announcement. Expectations of capital market-friendly policies—such as tax incentives for listed companies, easing of listing procedures, and reforms to encourage wider participation—have sparked new interest among both retail and institutional investors.
While daily turnover dipped to Tk 235 crore, its lowest in recent times, experts say this is not unusual during budget anticipation periods. Historically, volumes rebound once fiscal measures are confirmed. “The budget is likely to include initiatives to revive capital markets. That sentiment is already influencing trade behavior,” said a DSE broker on condition of anonymity. Recent reports also indicate that the finance ministry is in active discussions with the Bangladesh Securities and Exchange Commission (BSEC) to strengthen regulatory frameworks and introduce long-awaited reforms to the market. If implemented effectively, these policies could play a key role in building long-term market depth and transparency. The Dhaka Stock Exchange’s performance comes amid broader economic challenges, including global inflation and foreign reserve pressures. However, the stock market’s resilience highlights investor belief in the long-term potential of listed companies, particularly in sectors such as pharmaceuticals, textiles, and energy. Notably, the market’s gain occurred even as turnover hit a year-low, signaling selective but strong investor positioning. This reflects a growing preference for fundamentally sound stocks and a move away from speculative trading. It’s a sign that Bangladesh’s capital market may be maturing, with stakeholders paying closer attention to company fundamentals.
With reforms under consideration and economic strategies in flux, the next few weeks will be crucial for the DSE. A pro-market budget could act as a much-needed catalyst to attract both domestic and foreign investors. For now, the market’s upward tick offers a refreshing dose of optimism and points to renewed engagement by investors hoping for a brighter financial horizon.
