Stocks tumbled on Sunday as the risk-averse investors continued their heavy sell-offs on major sectors issues, fearing further fall of share prices.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 58.60 points or 1.19 per cent to settle to six weeks low at 4,858 points.
Two other indices also wobbled. The DS30 index, comprising blue chips, lost 21.77 points to finish at 1,647 and the DSE Shariah Index fell 10.16 points to close at 1,098.
Market analysts said investors dumped their holdings from major sector stocks fearing further fall since the experts warned that the second wave of Covid-19 may hit Bangladesh in coming winter.
World Bank's forecasts at a lower GDP growth (1.6 per cent in the current fiscal year) for Bangladesh also prompted investors for selling shares, said a leading broker.
Although the financial indicators are satisfactory considering the pandemic situation, investors' response to the World Bank's lower GDP forecast added further woes to the market performance, said the stockbroker.
The retail investors continued their selling binge on major sectors issues while institutional investors remained on the sidelines, said an analyst at a leading brokerage firm.
He noted that many investors are also moving to the primary market as the Bangladesh Securities and Exchange Commission (BSEC) approved a good number of initial public offerings in recent months.
The stock market regulator has approved IPOs of nine companies to raise an aggregate amount worth Tk 10.76 billion in the just three months, according to data from the BSEC.
Turnover, a crucial indicator of the market, stood at Tk 8.75 billion, which was 10.34 per cent higher than the previous session's turnover of Tk 7.93 billion.
The market ended negative as large-cap scrips like United Power and Brac Bank faced heavy sell pressure amid earnings season, commented UCB Capital, in its regular market analysis.
EBL Securities said investors mostly have taken a sideline approach in the midst of the bearish vibe and remained vigilant to restructure portfolio considering the upcoming earnings declaration.
Among the major sectors - financial institutions witnessed the highest fall, losing 3.5 per cent, followed by power with 1.40 per cent and banking 1.0 per cent while mutual fund, general insurance and life insurance posted gain of 4.50 per cent, 2.20 per cent and 1.90 per cent respectively.
Losers took a strong lead over the gainers as out of 355 issues traded, 239 ended lower, 80 closed higher while 36 issues remained unchanged on the DSE trading floor.
A total number of 181,853 trades were executed in the day's trading session with a trading volume of 399.78 million shares and mutual fund units.
The insurance sector dominated the turnover chart with Rupali Insurance topped the turnover list with shares worth Tk 275 million changing hands, closely followed by Republic Insurance, Federal Insurance, BD Finance and Walton Hi-Tech Industries.
The insurance companies also dominated the gainer chart with Rupali Life Insurance was the day's best performer, posting a gain of 9.90 per cent while BIFC was the worst loser, losing 9.83 per cent.
The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI)-losing 149 points to close at 13,880 while the Selective Categories Index - CSCX shedding 86 points to close at 8,337.
Of the issues traded, 175 declined, 69 advanced and 29 remained unchanged on the CSE.
The port city bourse traded 11.01 million shares and mutual fund units with turnover value of more than Tk 222 million.
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