Bangladesh’s capital market appears to be on the edge of a long-awaited bull run, supported by improving economic indicators, rising investor confidence, and policy reforms. After years of challenges, the country’s stock market is showing strong signs of recovery, making it a promising space for both retail and institutional investors. A key reason behind this optimism is macroeconomic stability. Inflation, which had climbed to double digits in 2024, has gradually declined to around 8.5 percent by mid-2025. Foreign exchange reserves have recovered to nearly $25 billion, and the taka has also stabilized. These positive signals have boosted confidence across financial sectors, including equities. At the same time, the Bangladesh Securities and Exchange Commission has taken several steps to increase transparency and accountability in the market. New rules now require companies to distribute dividends within strict deadlines, appoint more independent directors, and follow tighter guidelines on shareholding disclosures. These efforts are helping restore trust among investors and are attracting fresh participation in the market. Another strong support for the capital market is the improving external balance. The current account deficit has dropped significantly, and both exports and remittances have shown impressive growth. In May 2025, exports reached their highest level in nearly a year, while remittances rose by almost 28 percent in the first nine months of the fiscal year. These trends are increasing dollar inflows and easing pressure on the financial system. Liquidity in the banking sector has also started to improve. The central bank has reduced key interest rates, making funds cheaper and encouraging investment. This easing of monetary policy is expected to fuel more activity in the stock market, especially among companies with strong fundamentals. Market analysts note that many quality stocks are still trading at low valuations, offering a golden opportunity for investors. Large-cap, blue-chip companies with good earnings performance are now drawing increased attention. Trading volumes have picked up, and turnover has reached its highest point in ten months, indicating a revival of investor interest. While some challenges remain, such as non-performing loans and weak private investment, most experts believe the market is now better positioned for sustainable growth. Improved governance, economic stability, and better regulations are forming the foundation of a stronger capital market. If these conditions continue, Bangladesh’s capital market may enter a new growth phase, giving investors a rare chance to benefit from a bullish trend that could reshape the financial landscape.
