Dhaka Stock Exchange (DSE) began the week with the most intensified sale pressure since the market rebounded in March last year following the introduction of the floor price mechanism.
DSEX, the broad-based index of DSE, fell 143 points or 2.53% on Sunday, the biggest fall in terms of percentage points since 19 March last year.
The index closed at 5,504, with the DSE turnover increasing by 8% to Tk871 crore.
Sellers seemed to have turned adamant since the morning and the entire session was dominated by them, said a Motijheel-based brokerage trader.
He found some of his clients thinking about risk management for the first time since they went aggressive at the beginning of the stock market rally in mid-2020.
The market had rallied 50% over the July-January period and more than 20% over the December-January period.
Now it faces some correction naturally, said the stockbroker.
However, some regulatory steps to stop price manipulation and some other malpractices in the stock market seem to have unnerved some movers and shakers who do not mind booking some extraordinary capital gains.
Also, too much attention to new stocks diverted some funds.
Market analysts, on the other hand, still see the extent of economic recovery, favourable macroeconomic indicators, and low interest rate positively, which might fuel the capital market following a market-centric pause.
The central bank on Sunday announced that dividend restriction imposed on banks last year would remain in place for an undefined period.
No bank can disburse more than 15% cash and 15% stock dividends as the Bangladesh Bank wants the sector to retain enough cash so that banks can play their due role in economic recovery. The allowable limit of dividends is lower for the banks that are weaker in terms of capital adequacy.
Blue-chip index DS30 fell by 3.8% on Sunday, reflecting a massive sale pressure on selective stocks, usually held by informed investors.
Against gains of 43 scrips at the DSE, 224 lost and the prices of 86 securities remained unchanged.
Except general insurance, no other sectors could avert the Sunday slide. Cement, services, and food each lost more than 5% of their respective market capitalisation over the session.
Chittagong Stock Exchange, the port city bourse, registered 25% higher turnover despite the massive fall in all its indices.