Stocks extended the losing streak for the third consecutive weeks, with average daily turnover plunged to six months on major bourse, as ongoing pessimism kept investors mostly inactive.
Dealers said the ongoing pessimism coupled with lack of direction prompted retail investors to sell stocks while institutional investors mostly followed cautious stance ahead of year-end, taking the market in the red zone.
"Price correction of large-cap sectors, like food & allied, telecommunication, pharmaceuticals, engineering and fuel & power contributed the overall market fall," said an analyst at a leading brokerage firm.
The food & allied faced the major correction, losing 3.92 per cent, followed by telecommunication with 2.51 per cent, pharmaceuticals 1.08 per cent, engineering 0.88 per cent and power 0.64 per cent.
"The correction was triggered by sell pressure by investors to realise year-ending profits," commented City Bank Capital Resources, a merchant bank, in its weekly analysis.
The week featured five trading sessions as usual. Of them, three sessions closed lower while two sessions posted marginal gain.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 18.21 points or 0.29 per cent to settle the week at 6,230.
The two other indices also finished lower. The DSE 30 Index comprising blue chips fell 16.89 points or 0.75 per cent to finish at 2,247. The DSE Shariah Index (DSES) shed 12.85 points or 0.92 per cent to close at 1,376.
The second bourse Chittagong Stock Exchange (CSE) also closed lower with CSE All Share Price Index -- (CAPSI) - fell 62 points or 0.32 per cent to finish at 19,274.
The Selective Categories Index of the port city bourse -- CSCX, also lost 48 points or 0.41 per cent to close at 11,648.
EBL Securities, a stockbroker, said, "The market remained sluggish as some macroeconomic aspect like increasing trade deficit and rise in international oil price have raised red flag".
Furthermore, profit booking was imminent prior to year-end. As a result, the investors followed cautious stance throughout the week, the stockbroker said.
According to International Leasing Securities, indecisiveness and lack of confidence among the investors created choppy trading during the week.
"The wobbly investors persisted their sell-offs through the week to avoid further loss while some adopted "wait-and-see" stance," said the stockbroker.
The stockbroker noted that the average daily turnover for the week was the lowest since June 2017 as the small investors were shying away about taking fresh position while institutional investors remain in the sideline ahead of year-closing.
Bearish sentiment was also reflected on the turnover activities as total turnover for the week came down to Tk 21.77 billion on the DSE, which was 30.11 billion in the week before.
The daily turnover averaged Tk 4.35 billion, which was more than 28 per cent lower than the previous week's average of Tk 6.03 billion.
Block trade contributed 3.1 per cent to the total weekly turnover, where stocks like Western Marine Shipyard, RAK Ceramics, Confidence Cement, Grameenphone, BRAC Bank, Olympic Industries dominated the block trade board.
Banking sector kept its dominance over the turnover chart, capturing 21 per cent of the week's total transaction, followed by engineering with 13 per cent and textile 12 per cent.
Among the major sectors, only banking sector posted a 1.64 per cent gain after losing 3.98 per cent in the previous week.
The market capitalisation of the DSE also fell 0.74 per cent last week as it was Tk 4,237 billion at opening day of the week while it came down to Tk 4,205 billion Thursday.
Out of 337 issues traded, 170 closed lower, 141 closed higher and 26 issues remaining unchanged on the DSE trading floor during the week.