Foreign investors showed renewed interest in Bangladesh’s stock market during September, with purchases on the Dhaka Stock Exchange exceeding sales and creating a positive net inflow. DSE data showed foreign investors bought shares worth about Tk250 crore and sold around Tk180 crore between the beginning of the month and September 24, leaving roughly Tk70 crore in net investment. The buying trend was visible across most trading days in the period, with purchases exceeding sales on far more days than the reverse. The return of net foreign buying is significant because overseas participation had remained limited after a long period of withdrawals. Market participants linked the improvement to a combination of regulatory changes, a more flexible trading environment and the planned return of Bangladesh to regular review procedures by global index provider MSCI. The Bangladesh Securities and Exchange Commission has removed the floor-price system and introduced or drafted several market reforms, including revised public-offering rules, direct-listing proposals and changes to margin regulation. Bangladesh Bank has also eased some operational requirements for overseas investors, including raising the threshold for prior approval of capital repatriation and removing the need for an auditor’s certificate for each non-resident transaction. These changes can make the investment process more efficient by reducing administrative delays and simplifying the movement of funds. MSCI’s decision to resume normal index-review implementation for Bangladesh is also being viewed as a step toward greater integration with international portfolio-investment processes. Foreign participation is still small compared with the total size of the market, so the latest inflow should be seen as an early improvement rather than a complete transformation. Even so, renewed buying is useful because foreign investors often bring longer-term capital, research attention and international visibility to listed companies. A healthier capital market can help channel savings toward productive businesses and give strong companies more options for raising funds. The most important factor will be consistency. Investors need predictable regulation, transparent corporate reporting, fair trading and confidence that rules will remain stable. If the recent reforms are implemented steadily and market governance continues to improve, the return of foreign buying could develop into a broader recovery in international confidence in the Dhaka Stock Exchange.
