Share prices declined yet again after a rise for a couple of days, as profit-taking sales by investors caused a downslide Tuesday.
The benchmark general index of Dhaka Stock Exchange (DGEN) slumped 216 points, or 3.4 percent, to 6,173.38 points, while the selective price index of Chittagong Stock Exchange dropped 347 points, or 2.9 percent, to close at 11,227.
The market got off to a flying start, gaining more than 130 points within the first five minutes of trading but went downward after that and continued until the close of trading on the DSE.
Share prices of the major sectors such as banks declined 4.3 percent, pharmaceuticals 3.4 percent, fuel and power 4.7 percent and the telecommunication 4.4 percent, while non-bank financial institutes gained 0.8 percent.
Finance Minister AMA Muhith asked the merchant banks on Friday not to go for 'forced sales' when the market is volatile. His declaration resulted in massive gains in share prices of most sectors.
Saiful Islam, managing director of BRAC EPL Stock Brokerage Ltd and vice chairman of BRAC EPL Investments Ltd, said: "It is very much expected and the price correction was unavoidable because most of the investors pocketed 20 percent profit today."
Investors' gained confidence after observing the current market situation because trade volume increased compared to the previous day of trading, he added.
The daily turnover stood at Tk 962 crore, up Tk 385 crore from the previous day. Islam said it was a positive sign that the daily turnover has increased.
Shakil Rizvi, president of DSE, said: "Investors went into profit-taking sales."
The government initiatives are restoring normalcy in the market, he added.
Rizvi also said the government and the merchant banks should decide upon guidelines on 'forced sales' for investors as soon as possible.
A total of 80.48 million shares were traded against 52.95 million in the previous trading session. The number of trade deals came down to 1,71,487, which was 93,814 in the previous session.
The total market capital increased to Tk 2,87,524 million against Tk 2,87,149 million of the previous session.
Of the total 252 issues traded on the DSE floor, 28 advanced and 224 declined. National Bank was the top turnover leader with 41.54 lakh shares worth Tk 68.41 crore.
The other turnover leaders were People's Leasing and Financial Services, Beximco, Bay Leasing and Investment, Union Capital, Southeast Bank, International Leasing and Financial Services, Grameenphone, Prime Finance and Investment and United Commercial Bank.
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