Foreign investors withdrew a net Tk 270 crore from Bangladesh’s capital market in 2025, citing economic slowdown, market volatility and pre-election uncertainty, leaving the bourse under sustained pressure.

Data from the Dhaka Stock Exchange (DSE) show that overseas investors sold shares worth Tk 295 crore during the year, while purchases amounted to Tk 1,825 crore. However, sentiment showed signs of improvement following the elections.

Transaction figures for the first fortnight of February (1-15 February) indicate that foreign turnover rose 48 per cent year-on-year to Tk 173 crore, compared with Tk 116.63 crore in the same period last year.

Md Ashekur Rahman, Managing Director of Midway Securities, said there were early indications of renewed fund inflows after the elections, as global investors increasingly turn their attention to emerging and frontier markets.

Market analysts believe that a stable political environment, normal market operations and an increased supply of quality shares could help restore foreign investor confidence in the coming months.

According to DSE data, net foreign investment fell by Tk 261 crore in 2024. Overseas investors recorded negative net positions in seven of the past eight years, with 2023 being the only exception, when net inflows stood at Tk 64 crore.

In 2025, foreign investors posted positive net investment in five of the 12 months, actively buying shares between May and August – a period that also saw the benchmark DSEX index rise. However, from September to December they turned net sellers, steadily withdrawing funds.

Despite the net outflow, total foreign transactions – including both buying and selling – increased by 8 per cent year-on-year to Tk 3,920 crore in 2025, reflecting continued engagement with the market despite overall caution.