The Dhaka Stock Exchange (DSE) broad index - DSEX - closed lower on Thursday, hitting around three-year low, amid continuous selling pressure.
The market observed correction in all sessions, and settled at 4,810.21 points on the day, the lowest mark since November 30, 2016.
Experts blamed lack of quality IPOs (initial public offerings) as well as absence of coordination among the regulators concerned, among others, behind the continuous fall of the index.
The losers took the lead over the gainers on the premier bourse in all four sessions of the week.
On Thursday, out of the 353 issues traded, 271 issues declined, 59 issues advanced, and 23 issues remained unchanged.
Only the jute sector, comprising small cap securities, witnessed price appreciation. Other sectors, having a notable impact on the index, declined moderately.
Following investors' flat participation, the turnover value has also failed to cross Tk 4.0-billion mark since June 30.
On the day, the turnover stood at above Tk 3.27 billion, which was 2.15 per cent higher than that of the previous session.
Faruq Ahmad Siddiqi, former chairman of the securities regulator, said the market's stability cannot be ensured through scattered initiatives.
"Background of the continuous market correction is almost same. Investors' confidence will not be restored unless good governance is ensured along with bringing quality IPOs."
He also said the market is mainly driven by 'manipulations', and the reasons behind abnormal rise and fall of certain scrips are not made public by the regulator.
"Sometimes the index rises for a few sessions through piecemeal initiatives. But eventually investors' confidence has deteriorated, as short-term initiatives have failed to heal the market."
There is no alternative to bringing quality IPOs and ensuring good governance for long-term stability in the country's capital market, he added.
On Thursday, the shariah-based index - DSES - also lost 1.11 per cent or 12.49 points to close at 1,111.36 points.
The DS30 index, comprising blue chip securities, declined 1.18 per cent or 20.36 points to close at 1,704.54 points.
The large cap securities, such as Grameenphone, British American Tobacco Bangladesh Company (BATBC) and United Power Generation & Distribution Company, have played the major role behind the correction in last few sessions.
Investors' participation in banking sector, which once dominated the turnover board, has also been insignificant for a long time.
On Thursday, banking sector contributed only 6.9 per cent to the market turnover, whereas pharmaceuticals & chemical sector contributed 22 per cent.
The market intermediaries said the market is yet to observe momentum, as both retail and institutional investors have adopted a cautious stance following the continuous declining trend.