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Stocks plummeted on Thursday, extending the losing streak for the second day in a row, as the risk-averse investors continued to book profit on quick-gaining shares.
The market opened on a positive note in the morning but failed to sustain the positive momentum amid selling pressure from cautious investors.
Subsequently, the DSEX, the prime index of the Dhaka Stock Exchange (DSE), finally went down more than 61 points or 1.11 per cent to 5,506.
The DSEX shed 88 points in the past two trading days after gaining more than 266 points in the previous six trading days.
"The correction was mainly due to profit-taking on stocks that saw significant price appreciation in the last few trading days," said Md. Shakil Rizvi, managing director of Shakil Rizvi Stock Ltd.
Moreover, a section of investors sold their holdings to raise funds in preparation for purchasing Techno Drug shares set to debut on the market on Sunday, he said.
Price erosion of Beximco Pharma, BAT Bangladesh, Beacon Pharma, Olympic Industries and Eastern Bank contributed most to the day's market fall as they accounted for a 14-point fall in the index.
Beximco Pharma stock saw 3 per cent price correction while BAT Bangladesh, the third largest listed firm in terms of market-cap, declined 1.20 per cent.
"Stocks extended the losing streak since risk-averse investors preferred to liquidate their holdings in apprehension of a probable shift in market momentum," said EBL Securities.
The market pulse shifted to correction mode after a recent short-lived optimism due to waning investor confidence stemming from the prolonged bearish vibe in the market, said the stockbroker.
The market turnover stood at Tk 6.64 billion, which was 31 per cent lower than the previous day's Tk 9.67 billion.
The pharmaceutical sector kept its dominance on the turnover chart as the sector accounted for 16 per cent of the day's total turnover, followed by food (11 per cent) and banking sector (10 per cent).
The blue-chip DS30 index, a group of 30 prominent companies, also fell more than 15 points to 1,942 while the DSES Index, which represents Shariah-based companies, dropped 12 points to 1,207.
More than 86 per cent traded stocks saw price erosion as out of 397 issues traded, 343 saw price fall, and 36 closed higher while 18 remained unchanged on the DSE trading floor.
All the large-cap sectors posted negative performance. The non-bank financial institutions experienced the highest loss of 2.31 per cent, followed by engineering (1.81 per cent), power (1.54 per cent), food (1.21 per cent), telecom (1.08 per cent) and banking (1 per cent).
Sea Pearl Beach Resorts, which lost 2.7 per cent, became the most traded stock with shares worth Tk 245 million changing hands, followed by Salvo Chemicals, Orion Infusion, Lovello Ice-Cream, and Alif Industries.
Global Heavy Chemicals was the day's top gainer, posting a 9.88 per cent gain while BBS Cables was the worst loser, shedding 3 per cent.
The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI) losing 128 points to 15,757 and the Selective Categories Index (CSCX) shedding 76 points to 9,485.