Stocks began the new fiscal year with major indices at both the bourses inching down as investors remained cautious amid a tighter money market situation.
Following the intraday volatility, DSEX, the broad-based index of the Dhaka Stock Exchange (DSE) closed 0.27% lower at 6,359.77 as 219 scrips declined against the advances of 120 while 43 remained unchanged.
Blue-chip index DS30 and Shariah index DSES were down by 0.19% and 0.15% respectively, reflecting less selling pressure in the selective stocks.
Analysts said the Bangladesh Bank's monetary policy statement for the first half of the fiscal year reminded investors of the inflationary pressure, and a tightening money market as target credit growth for the first half of the 2022-23 fiscal year has been lowered.
"The central bank has declared a relatively contractionary monetary policy, and investors have continued their cautious stance amidst ongoing macroeconomic headwinds," EBL Securities wrote in its daily market commentary.
In an analysis of the monetary policy statement, alongside discussing the caution factors for the first half of the new fiscal, the brokerage firm also expressed its optimism about the mid-long potential of institutional money following into the capital market.
Turnover has gone down by 30.2% to Tk654 crore in the DSE as many investors were observing the market instead of pulling their trading triggers on Sunday.
Textile, fuel and power, and miscellaneous were the top contributing sectors in the daily turnover.
Services and real estate, and telecommunication generated positive returns while tannery, ceramic, and banking sectors suffered the highest corrections.
Indices of the Chittagong Stock Exchange also settled in red terrain.