The benchmark index of the Dhaka bourse dived below 4,500 mark on Thursday, as stocks remained in a free fall for the sixth day in a row following a sustained sell-off.
DSEX, the main index of the Dhaka Stock Exchange (DSE), ended the day 68.88 points or 1.51 per cent lower at 4,480.
In the past six consecutive sessions, the DSEX has lost a cumulative 278 points.
Market analysts said the central bank's latest directive on lending rates and the Supreme Court's order on GP to pay another Tk 10 billion to the telecom regulator within 90 days triggered sell-off in banking and GP shares.
The investors kept dumping major stocks fearing possible impact of the single-digit interest rate on the banking business as well as overall economy, said an analyst.
The Bangladesh Bank (BB) has formally instructed banks to fix a maximum 9.0 per cent interest rate on all loans, except for credit cards, with effect from April 1.
A leading broker said the implementation of the single-digit interest rate may directly affect the banks' profits as the interest is the main source of banks' income.
Such a step will also slow down credit flow to the private sector, he noted.
The banking sector has already taken a hit from this policy change in the past three trading days, as the sector lost 6.0 per cent of its value.
The decision to roll back the postal saving scheme's yield rate to its previous level has also adversely affected the market, said an analyst.
Following widespread criticism of the cut in yield rate, the finance minister on Wednesday said the yield rate of postal savings scheme will return to its previous rate by mid-March.
Two other indices of the DSE also ended the day lower. The DS30 index, comprising blue chips, fell 25.33 points to close at 1,492 and the DSES (Shariah) index lost 15.41points to settle at 1,044.
Turnover, an important indicator of the market, stood at Tk 5.61 billion on the country's premier bourse, down 10.5 per cent from the previous day's turnover of Tk 6.27 billion.
EBL Securities said banks' interest rate cut and GP's crisis dented the investor confidence further.
According to UCB Capital, the roll-back of the postal saving scheme's interest rate to the previous level has adversely affected the market.
The risk-averse investors liquidated their holdings considering the decline in the profitability of the banks due to the central bank's move which might squeeze the dividend yield, commented International Leasing.
The telecoms sector saw the highest loss of 4.69 per cent, followed by food (2.19 per cent), power (1.80 per cent), banking (1.53 per cent), engineering (1.45 per cent) and pharma (0.82 per cent).
Losers took a strong lead over the gainers, as out of 356 issues traded, 250 closed lower, 60 ended higher and 46 remained unchanged on the DSE trading floor.
A total of 145,319 trades were executed in the day's trading session, with trading volume standing at 215.21 million shares and mutual fund units.
The market-cap of the DSE also fell to Tk 3,429 billion from Tk 3,484 billion in the previous session.
Brac Bank topped the turnover chart with shares worth Tk 308 million changing hands, closely followed by VFS Thread Dyeing, Central Pharma, Silva Pharma and Indo-Bangla Pharma.
Central Pharma was also the day's best performer, posting a gain of 9.52 per cent while Standard Ceramic was the worst loser, shedding 8.74 per cent.
The Chittagong Stock Exchange also kept losing with its All Shares Price Index -- (CASPI) - plunging by 198 points to close at 13,742 and the Selective Categories Index -- CSCX - shedding 122 points to finish at 8,332.
Here too, the losers beat gainers, as 162 issues closed lower, 53 ended higher and 24 remained unchanged on the CSE.
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