Stock prices extended the losing streak for the second straight weeks as shaky investors continued their profit booking sell-offs on quick-gaining issues.
Week-on-week, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went down by 44.67 points or 0.91 per cent to settle at 4,872.
The core market barometer lost more than 123 points in the past two consecutive weeks.
Market operators said the retail investors continued their profit booking sell-offs on major sectors stocks while institutional investors remained on the sidelines, taking the market turnover and index down.
The International Monetary Fund's lower GDP growth projection for Bangladesh after the World Bank, added further woes to the market performance, said a leading broker.
According to the latest World Economic Outlook published on Tuesday, the IMF projects a 4.4 per cent economic growth of Bangladesh in the current fiscal year after the World Bank's forecasts at 1.6 per cent, much lower than the government's target of 8.2 per cent.
Investors were gradually ramping up their sell-offs as they were being engaged in profit booking while others were becoming anxious over the future economic condition of Bangladesh, the broker said.
He noted that the second wave of novel coronavirus which appears to be imminent in Europe would negatively affect exports and will have adverse impact on Bangladesh's economy.
According to International Leasing Securities, the risk-averse investors opted to liquidate their investment ahead of year-end dividend and quarter-end earnings disclosures, fearing a decline in earnings and dividend due to pandemic.
Sell pressure was prevalent throughout the week due to profit booking selling frenzy, as many investors opted to cash out gains from large-cap issues, commented EBL Securities.
However, directives to ease capital repatriation for foreign investors might inspire off-shore financiers to scrutinize Bangladesh's stock market as an investment case alternative which may lead an up-rise in turnover in coming days, said the stockbroker.
The week featured five trading days as usual. Of them, three sessions drifted lower while two sessions nudged up.
However, the two other indices posted marginal gain. The DSE 30 Index comprising blue chips advanced 1.08 points to finish at 1,670 and the DSE Shariah Index (DSES) gained 4.17 points to finish at 1,112.
The total turnover, a crucial indicator of the market, came down to Tk 33.58 billion which was Tk 46.01 billion in the week before.
The daily turnover averaged Tk 6.71 billion last week which was Tk 9.21 billion in the previous week, registering a decline of 27 per cent.
Major sectors witnessed correction with the general insurance witnessed the highest correction of 4.80 per cent, after sharp gain in recent weeks, followed by financial institutions with 4.0 per cent, engineering 2.70 per cent and banking 1.40 per cent.
On the other hand, telecom, food, pharma and power sectors gained 4.20 per cent, 3.0 per cent, 0.60 per cent and 0.20 per cent respectively.
Prices of 73 per cent traded issues declined during the week as out of 359 issues traded, 262 closed lower, 68 ended higher while 29 issues remained unchanged on the DSE floor.
The market capitalisation of the DSE also dropped 0.28 per cent week-on-week to Tk 3,985 billion on Thursday.
The insurance sector continued to dominate the week's top turnover chart with Asia Pacific Insurance topped chart with 18.18 million shares worth Tk 1.07 billion changing hands, followed by Continental Insurance, Beximco Pharma, Walton Hi-Tech and Beximco.
National Feed Mills was the week's best performer, posting 29.41 per cent while BD Finance was the week's worst loser, losing 16.78 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -losing 146 points to settle at 13,883 and the Selective Categories Index - CSCX shedding 86 points to close at 8,337.
Of the issues traded, 220 declined, 58 advanced and 33 remained unchanged on the CSE.
The port city's bourse traded 51.26 million shares and mutual fund units with turnover value of Tk 1.15 billion during the week.
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