The core index of the Dhaka Stock Exchange (DSE) tumbled below 4,900-mark after more than 33 months, as investors dumped their holdings even after the finance minister's assurance.
DSEX shed 40.96 points or 0.83 per cent to settle at 4,888 on Wednesday. It was the lowest level of DSEX since December 12, 2016, when it reached 4,869.
DSEX has lost a total of 328 points in the last one month, while it shed 1,062 points or 18 per cent since January 24, when the index was at 5,950.
The market capitalisation also lost Tk 515 billion in the last eight months since January 24, the DSE data shows.
Market analysts said ongoing depressed market outlook, withdrawal of foreign fund, and lack of any prompt solution despite the finance minister's marathon meeting further dampened the investors' confidence.
The investors were selling off shares fearing further fall, as they found no immediate way-out to the ongoing ailing market situation, said an analyst.
The government's various market supportive measures, including the central bank's declaration to ease advance-deposit ratio (ADR), redefining the banks' capital market exposure, and the finance minister's assurance, also failed to boost fund flow to the market, he said.
Finance Minister A H M Mustafa Kamal held a marathon meeting with the regulators and stakeholders on Monday to find out ways to halt the continuous market fall.
He said the government will continue its support to the market, and assured all that good stocks will be brought in the market and good governance will be established to revive the investors' confidence.
Mr Kamal also said listing process of the state-owned enterprises (SoEs) will be speed up to help revive the country's ailing capital market.
The investors apparently did not take the finance minister's assurance on trust, as the government often talks about enlisting of the SoEs. But the matter has seen no progress over the years, the analyst added.
A leading broker said the ongoing confidence crisis, the government's move to divert "idle funds" of the SoEs, the telecom regulator's row with the Grameenphone, and soaring volume of non-performing loans (NPLs) of the banks continue to haunt the investors' sentiment.
Earlier, the market slide began after the news that the budget for 2019-20 fiscal year was passed in parliament on June 30 without providing any significant incentive for the stock market, and it had hardly rebounded since then.
The financial sector is not performing well due to soaring NPLs. As a result, the investors are suffering from confidence crisis, which hit the banks' stocks hard, said the stockbroker.
Falling foreign portfolio investment in the country's capital market also eroded the local investors' confidence to put fresh fund into stocks, he added.
Khairul Bashar Abu Taher Mohammed, secretary general of the Bangladesh Merchant Bankers Association (BMBA), said the institutional investors are suffering from liquidity crunch.
Besides, the retail investors are not confident enough to inject funds into stocks amid a dismal market outlook.
Mr Bashar, also CEO of the MTB Capital Ltd, said the government's move to divert "idle funds" of the SoEs for development work also eroded the investors' confidence.
He noted that it [use of idle money] will deepen the ongoing liquidity shortage in the banking sector further.
On Wednesday, trading activities on the prime bourse fell to Tk 3.71 billion, which was 15 per cent lower than the previous day's Tk 4.35 billion.
The losers outnumbered the gainers, as out of the 352 issues traded, 214 closed lower, 97 ended higher and 41 remained unchanged on the DSE trading floor.
babulfexpress@gmail.com