Bangladesh Stock Market Underperforms Compared to Peers

In contrast, several neighboring countries saw impressive gains. Pakistan's benchmark index surged by 72.49%, Sri Lanka's Colombo Stock Exchange rose 48.80%, and India's BSE 500 climbed 14.80%. Other regional markets also performed well, with Vietnam gaining 12.67% and Malaysia’s FTSE Bursa Malaysia KLCI rising 12.32%. Only Indonesia and Thailand experienced declines, but their losses were less severe than Bangladesh’s.

LankaBangla Securities attributed Bangladesh's downturn to broader economic uncertainties, political unrest, market volatility, and low investor confidence. The resignation of former Prime Minister Sheikh Hasina and the political instability surrounding the quota movement contributed to the market's struggle.

According to EBL Securities, the year 2024 was marked by significant changes in leadership within the stock market regulator, which added to investor uncertainty. As a result, daily turnover in the DSE dropped to Tk630 crore, further declining to Tk410 crore in the final quarter of the year.

Saiful Islam, president of the DSE Brokers Association, called 2024 a "frustrating" year for investors, highlighting that a brief market spike following the fall of the Awami League government in August quickly fizzled due to a lack of confidence in the Bangladesh Securities and Exchange Commission's (BSEC) reforms.

Looking ahead, both EBL Securities and Asia Frontier Capital foresee a challenging 2025 for Bangladesh's capital market, with political and economic uncertainties persisting. However, they anticipate a potential recovery, supported by rising remittances, stable foreign exchange reserves, and the IMF's $4.7 billion loan program. The DSEX index is expected to fluctuate between 5,000 and 5,800 points, with average daily turnover ranging from Tk500 crore to Tk700 crore, contingent on improved liquidity and market sentiment.