Stocks slipped into the red on Monday, after a single-day break, as the risk-averse investors sold shares amid lack of clear market direction.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 23.88 points or 0.35 per cent to settle at 6,638, after gaining over 21 points in the previous day.
Two other indices also edged lower with the DSE 30 Index, comprising blue chips, shedding 6.60 points to close at 2,451 and the DSE Shariah Index (DSES) fell 5.05 points to finish at 1,454.
Turnover, a crucial indicator of the market, dropped below Tk 6.0 billion-mark further and amounted to Tk 5.57 billion, which was 13 per cent lower than the previous day's tally of Tk 6.43 billion.
Market analysts said the investors are struggling with a lack of confidence amid persistent volatility in the market.
"The market closed in the red again with no clear direction of the market due to the cautious trading behaviour of both buyers and sellers," said a leading broker.
Shorter trading periods in the Holy Ramadan and liquidity needed for upcoming Eid-ul-Fitr have also exacerbated the market situation, he said.
The prolonged Russia-Ukraine war has been worsening the situation amid disrupting the global supply chain, he added.
The investors preferred to hold cash ahead of upcoming Eid-ul-Fitr that lowered the funds flow to the market, said a stockbroker.
According to EBL Securities, stocks failed to retain the upward momentum as some investors are taking a cautious stance and favoured engaging in profit booking in the ongoing bearishness of the market.
The stockbroker noted that the market observed lackluster trading since most investors are reluctant to invest spontaneously in the market due to the temporary circuit breaker, which caused many equities to remain dearer at the present price level for investors.
Most of the major sectors suffered losses with the banking sector losing the most of 0.50 per cent, followed by telecom with 0.40 per cent, general insurance 0.40- per cent, power 0.30 per cent and pharma 0.30 per cent.
On the other hand, food, cement, engineering and financial institutions gained 0.60 per cent, 0.60 per cent, 0.20 per cent and 0.10 per cent respectively.
Losers took a strong lead over the gainers, as out of 381 issues traded, 234 declined, 91 advanced and 56 remained unchanged on the DSE trading floor.
IPDC Finance was the most traded stock with shares worth Tk 648.65 million changing hands, followed by
Beximco (Tk 283 million), Sonali Paper & Board Mills (Tk 191 million), LafargeHolcim (Tk 175 million) and Genex Infosys (Tk 149 million).
The newly listed JMI Hospital Requisite Manufacturing continued to top the gainer list for the eighth straight session, posting a 9.79 per cent gain while Dragon Sweater was the day's worst loser, losing 4.73 per cent following its price adjustment after record date.
The Chittagong Stock Exchange (CSE) also closed lower with the CSE All Share Price Index - CASPI -losing 49 points to settle at 19,495 and the Selective Categories Index - CSCX-shedding 29 points to close at 11,696.
Of the issues traded, 159 declined, 82 advanced and 38 remained unchanged on the CSE.
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