The broad index of the Dhaka bourse posted a sharp loss on Monday amid selling pressure observed in the major sectors.
The market operators said the shaky investors liquidated their holdings from sector specific stocks, especially from fuel & power, telecommunication and pharmaceuticals & chemicals sectors which pushed down the market.
Except food & allied, all sectors witnessed correction on the Dhaka Stock Exchange (DSE).
DSEX, the core index closed at 5372.23 with a loss of 1.13 per cent or 61.66 points.
Md. Moniruzzaman, managing director at IDLC Investments, said the enhancement of interest rate against deposits might have influenced many investors to invest in the banks, rather than the stock market.
The market opened the Monday's session with a negative note and continued the trend for 50 minutes.
Later, a weak recovery stance was observed that also failed to sustain and eventually the DSEX settled below 5400 points.
The shariah based index DSES declined 1.44 per cent or 18.14 points to close at 1240.61.
The DS30 index comprising blue chip securities went down by 0.93 per cent or 18.22 points to close at 1924.53.
According to a market review of the International Leasing Securities, the broad index of the premier bourse observed a nosedive amid day-long selling frenzy as the investors has lost 'confidence'.
"They went for selling of shares from the beginning of the session in all sectors, except food sector, and continued the same till closure without any major oscillation that led the key index to close around 5,370-level," said the International Leasing Securities.
Of total issues traded, only 45 advanced, 273 declined and 28 were unchanged on the premier bourse DSE.
The turnover stood at above Tk 4.18 billion which was 26.47 per cent higher than the turnover of the previous session.
"The index experienced selling pressure as investors continued to book profit from sector specific large-cap stocks. Besides, the price correction of large cap sectors played a role behind the sharp fall," said a market review of the EBL Securities.
Of the sectors whose securities lost prices, bank declined 0.3 per cent, engineering 1.1 per cent, financial institutions 1.7 per cent, fuel & power 1.5 per cent, pharmaceuticals & chemicals 0.6 per cent, telecommunication 1.9 per cent and textile 1.9 per cent.
Food & Allied was the only gaining sector which advanced 2.5 per cent on Monday.
Investors' participation was concentrated mostly on food & allied sector which grabbed 15.40 per cent of the market turnover followed by engineering 12.90 per cent, pharmaceuticals & chemicals 12.20 per cent and bank 10.70 per cent.
British American Tobacco Bangladesh Company topped the turnover chart with a value of Tk 575 million followed by Grameenphone Tk 226 million, United Power Generation & Distribution Company Tk 173 million, Fortune Shoes Tk 117 million, and Eastern Cables Tk 115 million.
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