Stocks witnessed a losing streak for the fourth straight week and the Dhaka Stock Exchange (DSE) lost more than Tk 32,000 crore in market capitalization.
The DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 423 points in the past four consecutive weeks.
Market analysts said cautious investors continued their sell-offs to avoid further losses pushing shares price to continuously fall.
On the other hand, newly listed stocks saw price-correction in the last two weeks as those securities witnessed an upward trend continuing after listing in the market, they mentioned.
They said most of the investors took cautionary mood on the pressure of margin loans adjustment to regulatory allowable limit, Bangladesh Bank's circular regarding dividend limit of banks coupled with price fall of large-cap stocks continued to put a negative impact on the market.
On the other hand, some small investors were busy selling their securities after noticing that some heavyweight issues kept falling in the past few weeks, they added.
However, the market-cap on the DSE stood at Tk 469710.7 crore on Thursday, down almost Tk 32,000 crore from Tk 501,709.6 crore on 14 January, 2021.
The DSEX, the prime index of the Dhaka Stock Exchange (DSE), decreased by 162.65 points or 2.88 percent to close at 5,485 points.
The DSE 30 Index comprising blue chips went up by 63.04 points to close at 2,110 and the DSE Shariah Index (DSES) decreased by 24.97 points to finish at 1,236 during the last week.
Shares of LankaBangla Finance, Summit Power, LafargeHolcim, Beximco Pharma, Square Pharma and Robi Axiata put pressure on the indices amid sluggish trading.
LankaBangla Finance's share price went down by 10.37 percent while Summit Power and LafargeHolcim fell more than 7.0 percent each.
Besides, the heavyweight drug maker Beximco Pharma lost 4.50 percent, newly listed Energypac Power decreased about 5.0 percent and Square Pharma shed 1.61 percent.
The weekly total turnover on the DSE increased to Tk 40.86 billion from Tk 37.52 billion in the week before.
On the other hand, the Ctg port city bourse, the Chattogram Stock Exchange (CSE) also saw a rapid fall during the time with its selective category index (CSCX) losing 268 points to close at 9,585 points.
The All-Share Price Index (CASPI) of the CSE was higher by 448 points to close at 15,883 points.
Of the issues traded, 203 declined, 27 advanced and 71 remained unchanged on the CSE.
Eminent economist and market expert, Prof Abu Ahmed told Bangladesh Post that many investors continued their selling spree on price-correction.
The government should immediately bring in some good companies, in order to undertake a drive to develop a long-term financing capital market, Ahmed added.
The economist said the government should encourage good companies, including local as well as multinational companies like Nestle to offer IPOs.
Mr Ahmed mentioned that the government should make some rules and give incentives that includes reducing corporate tax for listed companies to encourage good companies to be listed in the stock market.
