Foreign investors have stepped up share selling on the Dhaka Stock Exchange (DSE), offloading shares worth Tk 218 crore against purchases of Tk 63 crore through August 27.

Foreign investors traded shares worth a total of Tk 281 crore during the period, resulting in net selling of Tk 155 crore. Their transactions accounted for just 0.85% of the DSE’s total turnover.

DSE data showed that institutional investors bought shares worth Tk 1,147 crore and sold Tk 1,264 crore during the period. Meanwhile, broker-dealer accounts recorded purchases of around Tk 275 crore and sales of Tk 259 crore.

Small investors remained the dominant participants, purchasing shares worth Tk 14,849 crore and selling Tk 14,615 crore. Their transactions accounted for 89.12% of the DSE’s total turnover.

Market participants said some foreign investors had resumed investing in Bangladesh’s stock market from December last year, but the inflow did not last long. Selling has recently become more prominent among foreign investors.

According to brokerage officials, foreign trading is currently concentrated in a handful of companies, including BRAC Bank, Eastern Bank, Prime Bank, Square Pharmaceuticals, Olympic Industries, British American Tobacco Bangladesh, Grameenphone and Beximco Pharmaceuticals.

However, they said the recent selling does not necessarily indicate that foreign investors are completely withdrawing from the Bangladeshi market. Investors are selling some shares while continuing to buy selected stocks, depending on fund maturity, investment strategies and the country’s overall economic conditions.

DSE data showed that listed companies had a total of 9,471.70 crore shares at the end of July, of which foreign investors held 190.74 crore shares, representing 2.01% of total shares.

A year earlier, foreign investors held 189.68 crore shares out of a total 9,174.93 crore shares, accounting for 2.07%. This means their shareholding increased slightly in absolute terms but declined as a percentage of total listed shares.

Foreign investors’ share of the DSE’s market capitalisation also declined. Their share fell from 4.56% at the end of July 2025 to 3.98% at the end of July 2026, although total market capitalisation increased from around Tk 3.52 lakh crore to Tk 3.65 lakh crore.

Market participants said attracting foreign investment requires more than normal market movements and would depend on structural improvements, including stronger corporate governance, regulatory reforms and the listing of new companies with sound fundamentals.

They also said improvements in the broader economy, the investment climate and investor confidence would play an important role in determining foreign investors’ future decisions.