Peaceful elections spark hope in stock market
A renewed sense of optimism is emerging in the country’s capital market following the peaceful completion of the national parliamentary elections. Market stakeholders believe the stock market, which had slowed due to a lack of confidence and uncertainty, may regain momentum.
According to them, the formation of a political government will help create a favourable investment environment. As the election was held peacefully, the market may remain bullish in the coming days. If the new government ensures a secure and investment-friendly environment after assuming office, the upward trend in the market could become sustainable.
They also noted that the crisis of confidence in the market is expected to ease. However, to restore momentum and maintain a positive trend, arrangements must be made to list quality companies. Bringing strong firms to the market through Initial Public Offerings (IPOs) will be a key challenge for the new government.
Analysts said that due to the prolonged downturn, shares of most listed companies are currently undervalued. They believe liquidity will not be a major concern, as the main reason behind the market slump was a lack of investor confidence. With the election now completed, that confidence gap is expected to narrow naturally, encouraging many investors who had remained on the sidelines to become active again.
A member of the Dhaka Stock Exchange (DSE) said the market fundamentally depends on confidence, and political stability increases investors’ willingness to take risks. He added that policy continuity and clear signals of economic reform are now essential. Many investors had refrained from making new investments ahead of the election, but investment is expected to gradually increase if the situation remains stable.
Another DSE member said that while political stability may help restore market momentum, it alone is not sufficient. Sustainable growth will require strong corporate earnings, improved liquidity in the banking sector, and ensured good governance. Greater transparency among listed companies and effective regulatory oversight are also important.
He added that if the new government quickly implements an economic action plan and ensures an investment-friendly environment, a long-term positive trend could develop in the capital market.
Overall, investors are now watching whether the optimism created after the peaceful election can be transformed into sustainable growth through policy stability and real economic progress.
Dhaka Stock Exchange Director Md Shakil Rizvi told Jago News that the election was held without major violence, which would help restore investor confidence. “We expect the market to perform well in the coming days. However, to sustain this positive trend, quality companies must be brought to the market quickly, and the government must adopt investment-friendly policies,” he said.
When asked about future challenges for the stock market, he said ensuring good governance and bringing quality IPOs would be key priorities. He also stressed the need for government vigilance to prevent irregularities in the banking sector.
Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the government had made commitments regarding the stock market even before assuming power. “If these commitments are maintained, we will certainly see a better stock market,” he said, adding that investors expect the government to honour its promises.
Asked about upcoming challenges, he said the market is currently facing an IPO drought, and bringing quality companies to the market is the main challenge. Improved returns would automatically restore investor confidence. The peaceful election has already contributed to renewed optimism among investors, he added.
Investor Mizanur Rahman said expectations from the new government are high, as a large portion of investors are currently facing heavy losses, with some losing 70–80 per cent of their investments. While such losses cannot be recovered quickly, he expressed hope that government measures would help rebuild confidence and reduce investor losses.
He noted that controversial decisions had previously driven many investors away from the market, reducing liquidity. However, trading volume and market performance improved during the two trading sessions prior to the election, indicating the possibility of increased investment and stronger market activity ahead.
IPO-less Market
Initial Public Offerings (IPOs) are often considered the “new blood” of the stock market. The most recent IPO in the country’s market was from Techno Drugs, which raised funds through an IPO in June 2024. No company has launched an IPO since then, meaning the market has gone more than one and a half years without a new listing — the longest such period in the history of the country’s stock market.
Although no IPOs were launched in 2025, four companies raised funds through IPOs in 2024. Previously, four IPOs were issued in 2023, six in 2022, fifteen in 2021, eight in 2020, nine in 2019, fourteen in 2018, eight in 2017, eleven in 2016, twelve in 2015, twenty in 2014, twelve in 2013, seventeen in 2012, thirteen in 2011, eighteen in 2010, and seventeen in 2009.