Stocks backed to the red Wednesday, after one-day break, as investors were keeping a wary eye on the latest amendment of Banking Companies Act.
Market insiders said investors were unhappy as the revised law allows the doubling of the number of directors in a bank's board from a single family and extends the tenure of directors from six years to nine years.
The Parliament Tuesday passed the Banking Companies (Amendment) Act 2017 amid criticism from various quarters. Experts and economists warn that the amended act would further deepen the ongoing troubles in the banking sector.
Accordingly, banking sector issues witnessed the highest correction of 1.40 per cent as prices of 25 banks, out of 30 drifted lower.
National Bank Ltd shares incurred the highest loss of 3.04 per cent.
A market observer noted that many investors are also in confusion regarding a clear direction from the upcoming monetary policy statement (MPS) scheduled to be unveiled next week.
An emergency meeting held between Bangladesh Merchant Bankers Association (BMBA) and DSE Brokers Association (DBA) also failed to bring any positive impact.
Following the previous day's notable gain, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) opened higher amid thin participation of investors.
However, the positive trend failed to sustain as the session progressed amid sale pressure. Finally, DSEX, the core index fell more than 30 points while the CSE All Shares Price Index lost 32 points.
DSEX settled 6,098, losing 30.48 points or 0.49 per cent over the previous session.
According to EBL Securities, the market started on high note, but failed to sustain the momentum as the investors opted for realising gain from their portfolio.
The stockbroker noted that investors exerted selling pressure, especially on the stocks from bank, financial institutions and fuel & power sector.
The DS30 index, comprising blue chips also shed 10.93 points or 0.48 per cent to close at 2,236. However, the DSE Shariah Index (DSES) managed to stay positive, gaining 2.52 points or 0.18 per cent to stand 1,392.
Turnover remained below Tk 4.0 billion-mark and amounting to Tk 3.91 billion which was Tk 3.89 billion in the previous day.
"The total turnover remained almost flat over the last session as some of the investors adopted 'wait-and-see' strategy in recent turbulent market behaviour," commented International Leasing Securities, a stockbroker, in an analysis.
Pharmaceuticals sector emerged as turnover leader, grabbing 21 per cent of the day's total turnover, followed by banking sector with 17 per cent and engineering 15 per cent.
Among the large-cap sectors, banking sector witnessed the highest correction of 1.40 per cent, followed by non-bank financial institutions with 1.20 per cent and engineering 0.80 per cent.
On the other hand, pharmaceuticals, telecommunication, food & allied posted the most positive movements with 0.64 per cent, 0.28 per cent and 0.27 per cent gains respectively.
Losers took a strong lead over the gainers as out of 334 issues traded, 214 closed lower, 89 closed higher and 31 remained unchanged on the DSE trading floor.
Square Pharmaceuticals topped the day's turnover chart with 1.61 million shares of Tk 510 million changing hands, followed by Dragon Sweater, Grameenphone, IFAD Autos and Shepherd Industries.
Shepherd Industries was the day's best performer, posting a gain of 9.18 per cent while Alif Industries was the day's worst loser, shedding 6.45 per cent.
Chittagong Stock Exchange - (CSE) also ended lower with CSE All Shares Price Index (CAPSI) - shedding 54 points to finish 18,831.
The Selective Categories Index of the second bourse -- CSCX - also lost 33 points to settle 11,372.
Losers beat gainers as 147 issues ended lower, 59 closed higher and 23 remained unchanged on the CSE.
The CSE traded 8.50 million shares and mutual fund units worth Tk 272 million in turnover.
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