Stocks extended the losing streak for the second consecutive session on Monday as the proposed budget failed to meet investors' expectations.
DSEX, the key index of the Dhaka Stock Exchange, went down by 5.91 points or 0.15 per cent to close at 3,958.
The core index of the prime bourse is hovering between 3,953 and 3,969 points in the past 10 sessions as most of the investors were reluctant to make any fresh investment amid worsening situation of the deadly virus.
Market analysts said the failure of the proposed budget to meet investors' expectations while growing tension over the Covid-19 pandemic and floor price mechanism kept the investors at bay.
EBL Securities said the proposed budget has failed to boost the investors' confidence as they found nothing special in it for the stock market development.
The stockbroker noted that the worsening pandemic situation has made the market almost buyer-less in recent days as the outbreak is going to put a long-lasting adverse impact on the country's economy.
"Though the government allowed investing undisclosed money in the stock market, a similar opportunity has also been proposed for some other liquid assets, which may make capital market investment less attractive," said a merchant banker.
He noted that the reduced gap between corporate tax for listed and non-listed companies will also discourage good companies to go public.
Turnover slumped below Tk 1.0 billion-mark for the past five trading sessions to Tk 615 million on Monday, a 14 per cent higher than the previous day, as the investors were not showing any enthusiasm for buying shares.
The panicked investors liquidated their position from pharma, insurance, food and miscellaneous sectors stocks to escape further losses while the market observed some movement on banking sector stocks.
Most of the shares remained stuck at the trading floor.
Of the issues traded, 221 remained unchanged while only 7 issues advanced and 34 declined on the DSE trading floor.
The DS30 index, comprising blue chips, also fell 4.25 points to finish at 1,324 and the DSE Shariah Index lost 1.94 points to close at 917.
A total number of 12,808 trades were executed in the day's trading session with a trading volume of 28.74 million shares and mutual fund units.
The market-cap of the DSE also inched down to Tk 3,102 billion, from Tk 3,105 billion in the previous session.
The pharma sector dominated the turnover board and grabbed 43 per cent of the day's turnover.
Beximco Pharma topped the turnover chart with shares worth Tk 82 million changing hands, followed by Linde Bangladesh, National Bank, Central Pharma and Bangladesh Submarine Cable Company.
Vanguard AML Rupali Bank Balanced Fund was the day's best performer, posting a gain of 2.22 per cent while Beximco Synthetics was the worst loser for the second straight day, losing 5.55 per cent.
The Chittagong Stock Exchange edged lower with its All Shares Price Index (CASPI)-losing 21 points to close at 11,238 and the Selective Categories Index - CSCX -shedding 13 points to finish at 6,808.
Of the issues traded, 11 gained, 22 declined and 53 remained unchanged on the CSE.
The port city bourse traded 2.48 million shares and mutual fund units worth Tk107 million in turnover.
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