Following a recovering session on Tuesday, stocks did not take much time to lose momentum on Wednesday to reflect the weak sentiment of investors.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), declined by 0.37% to close at 6,207, wiping out most of the previous day's 0.64% gains.
"Dhaka bourse failed to extend the upward momentum as investors' confidence in taking long-term positions in equities weakened, prompting them to liquidate their portfolios and sit on cash in the absence of a major trigger in the market," said EBL Securities analysts in their daily market commentary.
The market remained choppy throughout the session as investors were hesitant to make new investments due to their apprehension of a bleak market outlook, which was exacerbated by the recent dismal corporate earnings disclosures, it added.
Furthermore, investor participation has yet to recover across the bourse, as the majority of scrips remain stuck at the floor price, limiting liquidation opportunities in the market.
However, the sellers' day ended with a 26.1% increase in daily turnover to Tk540 crore, which was Tk430 crore on Tuesday.
The pharmaceutical-chemical sector contributed the highest 19.8% of the daily turnover, followed by the IT and paper-printing sectors.
Jute, fuel-power and paper were the gaining sectors of the day, while IT, service-real estate and travel-leisure sectors suffered the biggest correction.
Only 21 scrips advanced on Wednesday against a decline of 63 – the opposite picture, compared to the previous session.
Equity indices at the Chittagong Stock Exchange (CSE), also had a similar decline, while turnover in the port city-bourse increased to Tk11 crore, from that Tk7 crore in the previous session.