Nearly equal to last year in just eight months, foreign transactions rising in stock market

Photo: Collected

The participation of foreign investors in the country’s capital market is increasing as a result of reform initiatives and the easing of the investment process. The total turnover of foreign investors in the first eight months of this year increased by 37.6 per cent compared to the same period last year. Not only that, the amount of these transactions from January to August has reached about 94 per cent of the total turnover of the whole of last year.

According to Dhaka Stock Exchange (DSE) data, the total turnover of foreign investors in the first eight months of 2026 was Tk 3,701 crore 28 lakh 97 thousand 898. In the same period last year, the amount was Tk 2,687 crore 39 lakh 47 thousand 809. As a result, turnover has increased by Tk 1,013 crore 89 lakh 50 thousand or 37.6 per cent in the space of a year.

Those concerned consider various market reform initiatives to be important behind the increase in foreign investors’ participation. The preparation to upgrade the capital market from a frontier market to an emerging market, communication with international index providers, the easing of the foreign investment process and the initiative to shorten the transaction settlement time are sending a positive message to investors.

DSE Managing Director Nuzhat Anwar said no single initiative of the DSE is at work behind the rise in foreign transactions. Rather, the preparation to upgrade the market from frontier to emerging market, communication with the institutions concerned including MSCI, the easing of Bangladesh Bank’s NITA-related rules and the initiative to move to the T+1 settlement system – all together have sent a positive message to foreign investors.

She said a complication in Bangladesh Bank’s Non-Resident Investor’s Taka Account or NITA system for foreign portfolio investors has recently been eased. Previously, after investing in Bangladesh, the money had to be accounted for through the NITA account at the time of every transaction. When the DSE informed those concerned of the matter, Bangladesh Bank eased the rule.

Under the new system, instead of accounting separately at the time of every transaction, a foreign investor will be able to complete the necessary accounting at the time of repatriating money from Bangladesh. Those concerned think this has made the foreign investment process easier than before.

Alongside this, the initiative to move to the T+1 settlement system is also sending a positive message to international investors. Besides ensuring professional management, transparency and accountability in the capital market, regular communication is being maintained with foreign investors. Nuzhat Anwar thinks foreign investment is increasing due to the combined effect of these initiatives.

DSE data says that although there have been notable fluctuations in foreign transactions since the beginning of this year, the overall trend is upward. In January, the amount of foreign transactions was Tk 377 crore 23 lakh 83 thousand 466. In February, it rose to Tk 663 crore 27 lakh 80 thousand 795.

Turnover fell to Tk 272 crore 3 lakh 57 thousand 980 in March and to Tk 175 crore 15 lakh 87 thousand 460 in April. However, there was a big jump in foreign transactions in May. Turnover in that month was Tk 831 crore 69 lakh 90 thousand 771, which is the highest in the first eight months of this year.

After that, foreign transactions stood at Tk 540 crore 16 lakh 61 thousand 470 in June and Tk 523 crore 14 lakh 52 thousand 966 in July. In August, it fell somewhat to Tk 318 crore 57 lakh 27 thousand 991.

On the other hand, the amount of foreign transactions in the first eight months of 2025 was Tk 2,687 crore 39 lakh 47 thousand 809. In January of that year, turnover was Tk 181 crore 81 lakh 5 thousand 105. Although it rose to Tk 264 crore 13 lakh 99 thousand 262 in February, it fell to Tk 171 crore 96 lakh 17 thousand 787 in March.

Turnover rose again in April and May. Transactions of Tk 426 crore 94 lakh 1 thousand 298 took place in April and Tk 506 crore 74 lakh 19 thousand 142 in May, which was the highest in the first eight months of that year. Although it fell to Tk 285 crore 30 lakh 77 thousand 619 in June, it rose to Tk 491 crore 43 lakh 66 thousand 217 in July. In August, turnover stood at Tk 371 crore 56 lakh 3 thousand 548.

In the whole of 2025, the total turnover of foreign investors was Tk 3,920 crore 42 lakh 20 thousand 21. Against this, transactions of Tk 3,701 crore 28 lakh 97 thousand 898 have taken place in just the first eight months of this year, which is about 94 per cent of the whole of last year.