Stocks lost 4.78 percent yesterday -- the steepest downswing in January -- as investors went for panic sell-offs amid falling confidence.
The benchmark General Index of Dhaka Stock Exchange closed at 4,709.91 points, after falling 223.58 points.
The index gained 5.34 percent on Thursday, the highest gain in 2012, as the government withdrew a notice enforcing a ban on public employees' investments in the capital market.
The port city bourse, Chittagong Stock Exchange, declined with the Selective Categories Index sinking 338.28 or 3.71 percent, to end the day at 8,770.01.
Experts believe investors lost confidence and went for panic sell-offs as market sentiments were mixed and the government's decisions may be changed anytime.
The government should clarify if it will not enforce the ban on public employees' investment further to increase investors' confidence, experts said.
They said market stability will depend upon regulatory move and liquidity situation in the money market.
“The bullish reversal took only a day to assume its original bearish trend. Panic sales started to pull down the index from the beginning of the day,” LankaBangla Securities said in its daily market analysis.
Banks led the price fall in signs of some investors quitting the market as they fear that the poor economic condition might create heavy non-performing loan in the portfolio of banks, LankaBangla said.
The banking sector lost 13.68 percent price within the last two weeks whereas overall market capitalisation declined by 10 percent.
Retail investors, under the banner of Bangladesh Share Investors Association, returned to the streets in front of the DSE building around 12:45pm, demonstrating and blocking roads of the commercial hub of Motijheel.
Investors put barricades across the road by making a makeshift bonfire with various objects, including abandoned wooden boxes and junk paper. Traffic resumed at 3:15pm.
Turnover on the premier bourse gained 10.97 percent, compared with the previous day. A total of 0.96 lakh trades were executed, generating Tk 285.97 crore in turnover, with 5.93 crore shares changing hands.
Of the total 256 issues traded on the DSE, 246 declined and seven advanced. A total of three securities remained unchanged.
All the major sectors lost: power 4.88 percent, non-bank financial institutions 4.81 percent, banks 4.71 percent, pharmaceuticals 3.92 percent and telecoms 3.03 percent.
On the port city bourse, losers beat gainers 168 to 15 with two securities remaining unchanged. More than 93.85 crore shares and mutual fund units traded with a value of Tk 39.69 crore.