Bangladesh Market Sees Mixed Trends as Global Pressures Ease

Dhaka, Bangladesh – Bangladesh’s stock and commodity markets displayed mixed signals this week as domestic economic indicators stabilized amid easing global inflationary pressures. The Dhaka Stock Exchange (DSE) benchmark index, the DSEX, edged up 0.3% on Wednesday, closing at 6,245 points, driven by renewed investor interest in textile and pharmaceutical sectors. Analysts attribute the modest gain to improved export data and a slight dip in fuel import costs.

According to the Bangladesh Bank, the country’s foreign exchange reserves rose to $24.5 billion as of mid-month, up from $23.8 billion in January, buoyed by higher remittance inflows and a narrowing trade deficit. Remittances from overseas Bangladeshi workers reached $1.9 billion in February, a 12% year-on-year increase, providing a cushion against external shocks. The central bank has maintained its key policy rate at 8.5% to combat inflation, which eased to 9.3% in February from 9.7% in January, offering some relief to consumers.

In the commodity sector, rice prices remained stable at around Tk 45 per kilogram in Dhaka markets, supported by a robust domestic harvest. However, edible oil prices saw a slight uptick of 2% over the past week, tracking global soybean oil futures which rose due to supply concerns in South America. The Ministry of Commerce has assured that strategic reserves of essential goods are sufficient to meet demand during the upcoming Ramadan season.

On the international front, Bangladesh’s export-oriented ready-made garment (RMG) industry, which accounts for over 80% of the country’s exports, reported a 3% increase in shipments in February compared to the same period last year. This was driven by orders from European and US buyers, as global retailers restock inventories. However, factory owners remain cautious about rising energy costs and potential disruptions in the Red Sea shipping route, which could affect delivery timelines.

Meanwhile, the Bangladesh Taka has stabilized against the US dollar, trading at Tk 110 per dollar in the interbank market, after depreciating sharply last year. The central bank’s intervention, coupled with lower import bills, has helped curb volatility. The IMF, which approved a $4.7 billion loan program for Bangladesh last year, has urged continued fiscal discipline to maintain macroeconomic stability.

In the capital market, the DSE’s textile sector index rose 1.5% on expectations of higher export earnings, while the pharmaceutical index gained 0.8% on news of new drug approvals. The banking sector, however, remained flat as investors weighed the impact of higher non-performing loans. The market regulator, the Bangladesh Securities and Exchange Commission, has announced measures to improve transparency and attract foreign portfolio investment.

Looking ahead, economists predict that Bangladesh’s GDP growth will moderate to around 6% in the current fiscal year, down from 7.1% last year, due to global headwinds. However, domestic demand, supported by a growing middle class and infrastructure investments, is expected to sustain economic activity. The government’s focus on expanding digital financial services and export diversification is seen as key to long-term resilience.

As the global economy shows signs of stabilization, Bangladesh’s markets are likely to benefit from lower import costs and steady remittance flows. Nonetheless, risks remain, including geopolitical tensions and climate-related disruptions. Market participants are advised to monitor policy developments and global trends closely in the coming weeks.