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Foreign transactions in capital market rise 37.6pc to Tk 3,701cr in 8 months

8-month turnover hits 94pc of FY25 total as BB eases NITA rules; proposed T+1 settlement and emerging market upgrade drive overseas portfolio inflows

Foreign investors’ participation in Bangladesh’s capital market has recorded significant expansion in 2026, driven by ongoing regulatory reforms, simplified investment procedures, and strategic market upgrade initiatives.

Total foreign transactions on the Dhaka Stock Exchange (DSE) surged 37.6 percent year-on-year in the first eight months of the year, according to official exchange data.

Between January and August 2026, the aggregate value of foreign portfolio transactions reached Tk 3,701.29 Cr, representing an increase of Tk 1,013.90 Cr compared to Tk 2,687.39 Cr recorded during the corresponding period in 2025.

Remarkably, the eight-month transaction volume has already achieved nearly 94 percent of the total foreign turnover recorded throughout the entire 12 months of 2025, which stood at Tk 3,920.42 Cr.
Market insiders and institutional analysts attribute the steady inflow of foreign capital to structural reform measures.

Key catalysts include preparations to transition Bangladesh’s capital market from frontier to emerging market status, active engagement with global index providers, procedural simplification, and plan to shorten the trade settlement cycle.

Highlighting key administrative breakthroughs, DSE Managing Director Nuzhat Anwar noted that procedural complexities regarding Non-Resident Investor’s Taka Accounts (NITAs) were recently streamlined following coordination with Bangladesh Bank.

Previously, foreign portfolio investors were required to maintain separate fund accounting for every individual transaction.

Monthly DSE data reveals significant transaction fluctuations throughout 2026, while maintaining an elevated overall trajectory compared to 2025.

Foreign transactions started at Tk 377.24 Cr in January and rose to Tk 663.28 Cr in February, before moderating to Tk 272.04 Cr in March and Tk 175.16 Cr in April.

Turnover hit a peak in May at Tk 831.70 Cr the highest monthly figure of the year before recording Tk 540.17 Cr in June, Tk 523.15 Cr in July, and Tk 318.57 Cr in August.

In contrast, monthly figures in 2025 stood at Tk 181.81 Cr in January, Tk 264.14 Cr in February, Tk 171.96 Cr in March, Tk 426.94 Cr in April, Tk 506.74 Cr in May, Tk 285.31 Cr in June, Tk 491.44 Cr in July, and Tk 371.56 Cr in August. Market participants anticipate that sustained market transparency and governance reforms will further consolidate foreign portfolio inflows through the remainder of the fiscal year.