The Dhaka bourse witnessed sharp fall on Monday amid selling pressure mainly from the securities of major sectors.
All the sectors, except the food & allied, witnessed correction on the day. As a result, more than three-fourths of the listed securities went red on the premier bourse.
At the end of the day's session, the DSE broad index DSEX lost 1.06 per cent or 57.69 points to close at 5,357.54.
In the previous session, the DSEX shed 0.94 per cent or 51.80 points to close at 5,415.24.
The broad index of Dhaka Stock Exchange (DSE) lost more than 100 points in last two consecutive sessions.
Experts said that dividend declarations by some companies have created frustration among the investors, leaving a negative impact on the index and turnover value.
Md. Shakil Rizvi, a former DSE president, said 'no' dividend recommended by Evince Textiles was one of the reasons which prompted investors to remain watchful.
He said Evince Textiles disbursed 20 per cent stock and 10 per cent cash dividend in 2016 and 10 per cent stock (bonus) dividend in 2017.
"After selling out the bonus shares, the company recommended 'no' dividend for the year 2017. The investors' confidence on textiles became shaky mainly after the 'no' dividend declaration by the Evince Textiles," he added.
Mr. Rizvi said foreign portfolio investors might have adopted wait and see policy to see whether local currency is devalued in the coming days.
Some stock brokers said the market witnessed a sharp fall on Monday as shaky investors opted to 'liquidate' their holding of shares mostly from engineering, fuel & power, textiles and financial institutions sectors to escape further losses which contributed to the plunge in indices.
On Monday, the shariah based index DSES closed at 1,233.49 points with a loss of 1.32 per cent or 16.65 points.
The DS30 index comprising blue chip securities declined 0.72 per cent or 13.75 points.
According to International Leasing Securities, the Dhaka bourse suffered a substantial loss in its benchmark index as the sellers dominated the day's session.
"The gloomy market outlook kept the investors anxious which resulted in a 58-point fall in a single day," said the International Leasing Securities.
Of the total issues traded, 49 advanced, 265 declined and 23 were unchanged on the DSE.
The turnover stood at above Tk 5.80 billion which was 22 per cent less than the turnover of the previous session.
Following the price correction, the DSE's market capitalisation declined 1.0 per cent to close at Tk 3.84 trillion on Monday.
"The market experienced extensive selling pressure caused by investors' cautious stance," said another market review of EBL Securities.
Of the declining sectors, bank lost 0.5 per cent, engineering 2.9 per cent, fuel & power 2.5 per cent, pharmaceuticals & chemicals 0.5 per cent, telecommunication 0.2 per cent and textile 1.8 per cent.
Investors' activity was concentrated mostly on fuel & power sector which grabbed 22.2 per cent of the market turnover followed by engineering 18 per cent, textile 17.5 per cent, pharmaceuticals & chemicals 8.9 per cent.
The large cap companies lost prices, while 'Z' group and small cap stocks dominated the top gainers' list.
Khulna Power Company topped the turnover chart with a value of Tk 648 million, followed by United Power Generation and Distribution Company Tk 402 million, Shasha Denims Tk 335 million, IFAD Autos Tk 242 million and Active Fine Chemicals Tk 194 million.
Saiham Textile Mills was the top gainer with a rise of 8.26 per cent to close at Tk 36.70 each.
Intech Limited was the worst loser after declining 9.92 per cent or Tk 6.0 to close at Tk 54.50 each.
On the Chittagong Stock Exchange (CSE), the benchmark index CASPI closed at 16,491.57 points with a loss of 1.25 per cent or 209.57 points.
Of 245 issues traded, 27 advanced, 205 declined, and 13 were unchanged.
The turnover stood at Tk 356.11 million on the port city bourse.
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