The equity benchmark index retreated into the red in the outgoing week, snapping a two-week winning streak, as mounting political tensions prompted investors to move to the sidelines after booking profit on quick-gaining shares.
Analysts say the prevailing floor price discourages investors from putting money in stocks while uncertain economic outlook may be another reason as to why fresh investments are not coming in.
The ongoing depressed market situation, liquidity crunch and lack of institutional participation altogether eroded investors' confidence, said a leading stockbroker.
Of the five trading days during the week, three sessions suffered losses while two managed to edge higher with the investors participation remaining almost flat.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), finally settled 17.56 points or 0.28 per cent lower at 6,249.29, after gaining 44 points in the past two straight weeks.
Top negative index contributors were Sea Pearl Beach Resorts, Emerald Oil Industries, Aftab Automobiles, and Unique Hotel & Resorts as they jointly accounted for 15-point fall in the key index.
The DS30 Index, which consists of blue-chip companies, also dropped more than 12 points to 2,094 and the DSES index, which represents Shariah-based companies, shed 0.78 points to 1,365.
According to EBL Securities, stocks ended in losing territory, snapping two-week gaining streak, owing to the short-term profit realisation of opportunistic investors amid shaky confidence regarding the market momentum stemming from the prevailing macroeconomic and political concerns.
"Investors preferred to secure short-term gain opportunities rather than long-term investments owing to the wavering market sentiment across the trading floor, leading the market to experience dominant sell pressure with bears taking control after two consecutive weeks of gain," said the stockbroker.
The participation of investors also decreased as the total turnover of the week stood at Tk 29.28 billion, down from Tk 29.82 billion in the week before.
Accordingly, the average daily turnover stood at Tk 5.85 billion in the outgoing week, which was almost 2 per cent lower than the previous week's average of Tk 5.96 billion.
Majority of the traded shares saw price erosion, as out of 388 issues traded, 133 closed lower, 49 higher and 26 remained unchanged on the DSE trading floor.
Most sectors saw price correction, with the travel & leisure sector saw the highest correction of 1.60 per cent, followed by general insurance, ceramic, jute and textile while mutual fund, banking, pharmaceuticals and power sectors saw price appreciation marginally.
The pharma sector dominated the weekly turnover chart, accounting for 18 per cent of the week's total turnover, followed by engineering and textile.
Small-cap stocks kept dominance on the turnover list with Orion Infusion becoming the most-traded stocks, with shares worth Tk 1.62 billion changing hands, followed by Olympic Accessories, Pacific Denims, Central Pharma and Khulna Printing & Packaging.
ICB AMCL CMSF Golden Jubilee Mutual was the week's top gainer, soaring 30 per cent while Sea Pearl Beach Resort was the worst loser, shedding 22.84 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with its All Share Price Index (CASPI) losing 42 points to settle at 18,541 and the Selective Categories Index (CSCX) shedding 24 points to close at 11,088.
The port city's bourse traded 31 million shares and mutual fund units with a turnover volume of Tk 745 million.
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