The stock market returned to the red this week to Thursday amid high volatility, after a single-week break, as wary investors moved to the sidelines after locking in profits from major sector issues.
Of the five trading days this week, the first three sessions suffered losses while the last two managed to close marginally higher amid choppy trading.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settled the week 51.11 points or 0.78 per cent lower at 6,512.89, after gaining 49 points in the previous week.
Market operators said the risk-averse investors booked profits on large-cap stocks while some were busy reshuffling their portfolios.
Apprehension of dismal earnings forecasts of major companies coupled with persisting economic uncertainty prompted investors to lock in profit, said a merchant banker.
He noted that stocks tumbled as major shares from pharmaceuticals, power and miscellaneous sectors witnessed intense selling pressure after their recent price appreciation.
"The stock market passed a gloomy week as the investors showed profit booking tendency throughout the week," said International Leasing Securities, in its weekly market analysis.
Most of the investors followed a cautious stance as the interest rate along with the inflation rate is rising quickly all over the world.
The worldwide interest rate hike to curb inflation caused a significant decrease in major indices across the world which created a negative sentiment among the investors and the investors decreased their participation, said the stockbroker.
EBL Securities said the investors realized profits from the recently rallied stocks and some stayed on the sidelines ahead of upcoming earnings declarations as concerns loomed around global economic contraction and recent macroeconomic adversities in the country.
The recent market corrections drove the majority of the shares down to the floor price level without potential buyers that led to decreased participation in the market and prompted investors to take cautious stance, said stockbroker.
The week's total turnover dropped sharply to Tk 73.06 billion on the prime bourse as against Tk 101 billion in the previous week.
The daily turnover averaged out at Tk 14.61 billion, down 28 per cent over the previous week's average of Tk 20.22 billion.
Two other indices of the DSE also ended lower this week. The DS30 Index, comprising blue-chip companies, fell 35.27 points to close at 2,330 and the DSES Index shed 17 points to finish at 1,419.
The miscellaneous sector dominated the turnover chart, grabbing 18 per cent of the week's total turnover, followed by pharmaceuticals (17.5 per cent) and engineering (11 per cent).
Major sectors suffered losses. The power sector witnessed the highest loss of 2.10 per cent, followed by pharma 2.09 per cent, engineering 0.22 per cent, telecom 0.17 per cent and food 0.06 per cent.
However, investors' enthusiasm was focused in the small-cap sectors like services & real estate, ceramic, paper & printing and travel & leisure which saw remarkable gains of 7.40 per cent, 3.70 per cent, 2.50 per cent and 1.60 per cent respectively.
Losers took a strong lead over the gainers as out of 386 issues traded, 173 ended lower, 61 higher and 152 issues remained unchanged on the DSE floor.
Orion Pharma was the most-traded stock with shares of Tk 6.61 billion changing hands during the week, closely followed by Beximco, Eastern Housing, Bangladesh Shipping Corporation and JMI Hospital Requisite Manufacturing.
Eastern Housing was the week's top gainer, soaring 25.24 per cent while Meghna Life Insurance was the week's worst loser, losing 12.12 per cent.
The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) losing 155 points to settle at 19,189 and its Selective Categories Index (CSCX) shedding 94 points to close the week at 11,502.
Of the issues traded, 126 declined, 59 advanced and 132 issues remained unchanged on the CSE trading floor.