Stocks slipped into the red on Thursday, snapping a four-day gaining streak, as cautious investors booked quick gains on financial issues.
Market operators said investors were mostly in selling mood throughout the day amid rising classified loans in the banking sector coupled with falling foreign portfolio investment.
The amount of classified loans in the country's banking sector reached an all-time high of nearly Tk 1.0 trillion in September ahead of the upcoming national election, according to data of the central bank.
Net foreign funds in the DSE remained negative (Tk 225 million) in November as foreign investors were reluctant to put fresh investments, the Dhaka Stock Exchange (DSE) data shows.
On Thursday, the last trading session of the week, the market opened on a positive note but the stocks fell steadily in the remaining hours of the session amid selling pressure.
At the end of the session, DSEX, the prime index of the DSE, settled at 5,332, losing 28.30 points or 0.52 per cent, after adding 80 points in the previous four straight sessions.
According to the International Leasing Securities, the news of soaring non-performing loans in the banking sector and falling net foreign funds prompted the investors to sell off stocks.
The DS30 index, comprising blue chips, also fell 9.95 points to finish at 1,862. The DSE Shariah Index shed 7.06 points to close at 1,224.
Turnover, another important indicator of the market, also fell to Tk 5.14 billion, which was 24 per cent lower than the previous day's turnover of Tk 6.79 billion.
Among the major sectors, cement faced the highest correction of 1.10 per cent, followed by financial institutions (0.90 per cent), banking (0.50 per cent) and pharmaceuticals (0.40 per cent).
Power and telecommunications sectors advanced 0.70 per cent and 0.60 per cent respectively.
A total number of 137,535 trades were executed in the day's trading session, with trading volume standing at 150.58 million securities.
The market capitalisation of the DSE also fell to Tk 3,836 billion on the day, which was Tk 3,841 billion the previous day.
The losers took a strong lead over the gainers, as out of 343 issues traded, 202 declined, 112 advanced and 29 issues remained unchanged on the DSE trading floor.
Dragon Sweater topped the DSE turnover chart, with 7.58 million shares worth Tk 196 million changing hands.
The other turnover leaders were Saiham Cotton Mills, ML Dyeing, United Power and Intech.
The low-cap companies continued to dominate the gainers' chart with Prime Islami Life Insurance was the day's best performer, posting a gain of 9.97 per cent, followed by Pragati Life Insurance (9.45 per cent).
Delta Spinners was the biggest loser, shedding 6.94 per cent.
The port city bourse, Chittagong Stock Exchange (CSE), also ended lower, with its CSE All Share Price Index - CASPI -losing 102 points to settle at 16,326 and the Selective Categories Index -- CSCX -- shedding 67 points to finish at 9,878.
The losers beat the gainers, as 153 issues closed lower, 74 ended higher and 18 remained unchanged on the CSE.
The port city bourse traded 9.35 million shares and mutual fund units worth over Tk 221 million in turnover.