The turnover value on Dhaka Stock Exchange (DSE) hit 20-month low on Sunday as investors' participation in share trading declined significantly amid liquidity shortage.
On the day, the benchmark index of the premier bourse also witnessed free fall throughout the whole session and subsequently losers outnumbering the gainers.
Market operators and experts blamed liquidity crisis and investors' shaky confidence for the poor turnover.
At the end of the session, the DSE broad index DSEX closed at 5,773.36 points with a loss of 0.93 per cent or 54.62 points.
The shariah based index DSES declined 0.67 per cent or 9.21 points to close at 1363.78 points, while blue chip index DS30 closed at 2126.17 points with a loss of 0.82 per cent or 17.64 points.
On the other hand, the turnover value stood at above Tk 2.36 billion, which was the lowest figure since July 11, 2016.
Following the investors' less participation, all sectors of the listed securities declined on Sunday. Moreover, some major sectors including the bank observed selling pressure.
Mostaque Ahmed Sadeque, president of DSE Brokers Association (DBA) of Bangladesh, said different news regarding liquidity crisis has squeezed investors' confidence level for the time being.
"The unsettled issue of selecting the exchange's strategic partner is also another reason of investors' concern. But, I hope, the market will turnaround soon," he said.
Of the total number of issues traded, 53 advanced, 246 declined and 31 were unchanged on the premier bourse DSE.
Previously, the DSE featured a turnover of above Tk 2.09 billion on July 10, 2016. The Sunday's turnover value was the lowest one during a period from July 11, 2016 to March 11, 2018.
Shahidul Islam, chief executive officer of VIPB Asset Management, said that due to higher interest rate on bank deposits, fresh fund is not coming into the capital market.
"The interest rate rose by around 3.5 per cent in last three months. Due to higher opportunity cost, the stock market is being failed to get fresh funds," Islam said.
Mohammad Saifur Rahman, an executive director of the securities regulator, said that Bangladesh Securities and Exchange Commission (BSEC) was observing the market situation.
"The stakeholders will sit on Monday to discuss the overall market situation," he said.
The market review by a brokerage firm said that the recent liquidity crisis in the banking sector and turbulent capital market behavior basically downgraded the investors' buoyancy.
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