Over half of investors are planning medium-term capital market investments this year, signalling cautious optimism amid political and economic shifts, according to the Bangladesh Capital Market Sentiment Survey 2026.
The 14th iteration of the survey was conducted by LankaBangla Securities from January 1 to February 25. It found that 52.5 per cent of respondents are focusing on medium-term investments this year.
Meanwhile, 22.8 per cent are taking a long-term approach, and 13.9 per cent plan to engage in short-term trading. The remainder intend to observe the market passively.
The banking sector is expected to lead growth in 2026, according to around half of respondents.
Among asset classes, 41.6 per cent of respondents believe equities will outperform in 2026, while 26.7 per cent expect gold to deliver the best performance.
Political stability is expected to have the greatest influence on the stock market, according to 54.5 per cent of respondents. Another 15.8 per cent cited regulatory reforms, 13.9 per cent corporate earnings, while the remainder pointed to foreign investment trends, technology-driven initiatives, margin loan restructuring, taxation policies, and other factors.
The political environment in 2026 is expected to support market growth, according to 47.5 per cent of respondents who agreed and 16.8 per cent who strongly agreed. Meanwhile, 26.7 per cent remained neutral, and the remainder disagreed.
Respondents were divided on whether fiscal and monetary policies align with the goals of a thriving capital market, with 43.6 per cent remaining neutral. Meanwhile, 18.8 per cent agreed, and 6.9 per cent strongly agreed, whereas 18.8 per cent disagreed and 11.9 per cent strongly disagreed.
Political risks were identified as the primary reason for limited foreign investor participation by 43.6 per cent of respondents. Meanwhile, around a quarter cited weak governance in listed companies.
A fully operational commodity market is expected to be a moderate contributor by 39.6 per cent of respondents, while 31.7 per cent foresee a limited impact.
Market fraud and manipulation emerged as the most critical ethical issue facing Bangladesh’s financial markets in 2025, according to 41.6 per cent of respondents. Another 22.8 per cent cited inaccurate financial reporting.
Enhanced transparency in financial reporting and disclosures is seen as the most needed action to restore trust and integrity in 2026, according to 31.7 per cent of respondents. Another 28.7 per cent prioritise improved enforcement of existing laws and regulations to attract investment.
Investment in renewable energy should be prioritised, according to 54.5 per cent of respondents, while a quarter support enforcing energy efficiency measures.
Creating more jobs for youth is seen as the top reform priority in 2026, according to 43.6 per cent of respondents, while 37.6 per cent support strengthening anti-corruption measures and 18.8 per cent prioritise reforming the tax system.
Regarding the impact of the 2026 national elections on the economic outlook, 53.5 per cent of respondents expect a positive effect through increased stability and investor confidence, 21.8 per cent expect a neutral impact, 14.9 per cent believe it is too early to tell, and 9.9 per cent anticipate a negative impact with heightened uncertainty.
