B Mirror Report: The country’s stock market is showing strong signs of recovery after a prolonged downturn.
However, sustaining this long-term growth will largely depend on post-election political stability, structural reforms, and continuous improvements by regulatory authorities. These observations were highlighted by Bangladesh Bank in its Monetary Policy Statement (MPS) for the January–June 2026 period, released on Monday.
Bangladesh Bank (BB) stated that despite periodic fluctuations, the market remained generally upward during the first half of the 2025–26 fiscal year. A significant increase in trading volume, in particular, has provided a clear signal of renewed market momentum.
According to statistics, the benchmark DSEX index stood at 4,838 points in June 2025 and rose by 0.6 percent to 4,865 points by the end of December. This positive trend continued in the following weeks, with the index crossing the 5,200-point mark in early February 2026. The central bank noted that average daily turnover reached Tk 65 billion in the first half of FY 2025–26, up from Tk 47.2 billion in the previous year, reflecting growing investor confidence.
To further modernize and strengthen the stock market, the government has undertaken measures such as reducing state ownership in multinational companies, encouraging the listing of strong local firms, preventing market manipulation, and offering tax incentives.
The central bank also emphasized that the introduction of a commodity exchange and the implementation of a blockchain-based back-office system would enhance market transparency and further boost investor confidence. Bangladesh Bank stressed that coordinated efforts by all stakeholders, including the Ministry of Finance, are essential to develop an efficient bond market and deepen the overall financial market.
The Bangladesh Securities and Exchange Commission (BSEC) has introduced several important amendments to ensure market stability and strengthen good governance. Among these, the “Margin Rules 2025” have reinforced risk management in margin trading. Proposed updates to IPO, mutual fund, and public issue regulations are also expected to improve transparency.
The central bank views the establishment of mechanisms for the swift resolution of investor complaints and the formation of a Shariah Advisory Council to expand Shariah-compliant investment opportunities as positive developments
As of December 2025, a total of 232 government treasury bonds were actively traded in the secondary market. During the same month, the government raised Tk 240 billion through six investment sukuk, supporting liquidity management by banks and financial institutions and facilitating the effective implementation of monetary policy.
To further strengthen the secondary market, Bangladesh Bank has issued a directive requiring primary dealers to quote two-way (buy and sell) prices for treasury bonds during the first hour of trading on every working day. The directive is scheduled to be implemented by January 31, 2026.
