Five firms had the most alluring shares for international investors in July. The top banks on the list were Prime Bank, BRAC Bank, IDLC Finance, Marico, and Uttara Bank.

The Dhaka Stock Exchange (DSE) reports that net foreign portfolio investment rose by almost Tk 250 crore in the previous month. There are 145 businesses with foreign investment at the moment. Of these, 27 saw a fall in investment, while 24 saw a rise.
The majority of Prime Bank shares were purchased by foreigners. They purchased Tk 78 crore worth of firm shares. BRAC Bank shares worth Tk 233 crore, IDLC Finance shares worth Tk 19 crore, Marico shares worth Tk 11 crore, and Uttara Bank shares worth Tk 39.2 crore were purchased.

Market analysts indicate that foreign investors typically favor companies exhibiting strong governance and significant business potential. Nevertheless, the prevalence of ‘junk stocks’ within the country’s market restricts investment opportunities to a select few companies. Furthermore, factors such as macroeconomic instability, a crisis in foreign exchange reserves, and political uncertainty are hindering foreign investment.

A recent assessment by MSCI noted that while the Bangladesh Securities and Exchange Commission (BSEC) has removed the floor price, it remains applicable to the shares of two specific companies. Due to a shortage of foreign exchange, foreign investors are also experiencing delays in repatriating their capital. Consequently, they have categorized Bangladeshi shares under ‘special arrangements’. Similarly, FTSE Russell announced plans to reassess the eligibility of Bangladeshi securities given the absence of floor price restrictions.

During the ‘Foreign Investors Summit 2025’ recently held by BRAC EPL Stock Brokerage, Anisuzzaman Chowdhury, Special Assistant to the Chief Advisor on Economic Affairs, remarked that despite political transitions, Bangladesh’s economy has not descended into crisis. He stated, “Bangladesh has secured the third position among the emerging global stock markets, which reflects the economy’s stability.”

Takao Hirose, managing director of Contexwell Investment LLC, emphasized that political stability is crucial for attracting long-term foreign investment. He warned, “We invest aggressively, but we cannot tolerate instability. Should the situation become unstable, we will withdraw our capital. International investors are closely monitoring all developments.”

Ruchir Desai, fund manager at Asia Frontier Investments, expressed that if political and policy stability is guaranteed, there will be no barriers to Bangladesh’s growth over the next five to six years.

DSE Chairman Mominul Islam stated that the independence of the regulatory body has been secured to enhance foreign investment. There is now no interference in the market’s daily operations.