The key index of Dhaka Stock Exchange slumped below the 'psychological' threshold of 4,400-mark on Monday as worried investors' sell-offs continued.
DSEX, the core index of the DSE, went down by 36.51 points or 0.82 per cent to settle at 4,394, the lowest in more than 42 months since June 26, 2016, when the index was 4,380.
Market operators said investors are struggling with ongoing depressed market outlook while gloomy macroeconomic scenario, soaring non-performing loan and foreign investors' pulling funds out of the market worsened the situation.
An analyst said market volatility intensified in recent times amid concern over dismal macroeconomic outlook, lingering tussle between GP and telecom regulator over an audit claim and little hope of an immediate market recovery.
The market has been in the doldrums in the past eleven months amid investors' confidence crisis which eroded 1,556 points of DSEX and the DSE market-cap shed Tk 848 billion since January 24, this year.
A merchant banker said continuing fall in the private sector credit growth, declining exports, poor tax revenue collection and heavy government bank borrowing reflected a gloomy state of the country's economy.
Ongoing erosion in stock prices reduced investment ability of the market intermediaries and high net worth investors, he said.
The market opened on negative note and the downward trend continued until end of the session with no sign of reversal.
Two other indices also ended lower. The DS30 index, comprising blue chips, lost 7.05 points to finish at 1,494 and the DSE Shariah Index shed 5.53 points to close at 981.
Turnover, a crucial indicator of the market, also fell and amounted to Tk 2.63 billion, which was 2.95 per cent lower than the previous day's turnover of Tk 2.71 billion.
The depressed market outlook kept the investors worried, which led the key index to fall below psychological 4,400-mark, commented International Leasing Securities.
The stockbroker noted that the panicked investors liquidated their holdings from all the sectors except telecom which save the index from big fall.
EBL Securities said heavy sell-offs on trusted stock of large-cap companies dragged down the market further.
The stockbroker noted that continued sell-off by the foreign investors due to dearer dollar value against taka and gloomy macro outlook added further woes to the market.
The port city's bourse, the Chittagong Stock Exchange, also ended lower with its All Shares Price Index (CASPI)-losing 95 points to close at 13,384 and the Selective Categories Index - CSCX -shedding 58 points to finish at 8,113.
Here too, the losers beat gainers, as 151 issues closed lower, 56 ended higher and 32 remained unchanged on the CSE.
The port city bourse traded 4.74 million shares and mutual fund units worth Tk 93 million in turnover.
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