Analysts said the financial and some other large-cap stocks moved sharply lower as quarterly earnings season continued to keep investors vigilant about performance of bank, real estate and manufacturing stocks.
During last week, Telecommunication (+3.9 per cent) and NBFI (+2.5 per cent) performed pretty well while Bank (-2.2 per cent) and Non Life Insurance (-1.2 per cent) fell. Investors were most active in Engineering and Pharmaceuticals & Chemicals, as they captured 16.3 per cent and 12.3 per cent, respectively of the week's total turnover. Besides, Large (+1.3 per cent) and Micro Cap (+0.8 per cent) supported the market to remain in position throughout the week.
The market witnessed shortened week with four trading sessions instead of five as the market was closed on Thursday due to Bijoya Dasami, a public holiday.
During the four-session week, the market saw sharp decline in two sessions while the rest two sessions closed slightly higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 28.95 points or 0.62 per cent to settle the week at 4,647.68.
The week started with steep cut weighed by bank, real estate and pharma stocks and the benchmark index hit its strong support at 4,600-level as investors were playing safe seeing continual drop in index reading, said LankaBangla Securities, a stockbroker, in its weekly analysis.
"Though middle of the week performed modestly amid hope in quarterly earnings performance, weaker than expected earnings declared some heavyweight stocks battered the market sentiment," said the stockbroker.
The investors might have also reacted to the news of World Bank report where it alleged China economic slowdown, global commodity price fall and other external factors as potential risk for Bangladesh economy, said the stockbroker.
Meanwhile, the two heavyweight multinational stocks -- Grameenphone (GP) and Lafarge Surma Cement-- which capture almost 17 per cent of total market cap of the DSE, took a break in their price fall last week.
GP gained 4.09 per cent while Lafarge Surma closed almost flat last week, after plunging 6.0 per cent and 10.5 per cent respectively in the previous week.
The two other indices also ended in the red. The DS30 index, comprising blue chips, dropped 3.95 points or 0.22 per cent to finish at 1,762.55. The DSE Shariah Index fell 1.59 points or 0.14 per cent to end at 1,113.25.
The port city bourse Chittagong Stock Exchange (CSE) also closed lower with its Selective Categories Index - CSCX - shedding 75.12 points or 0.86 per cent to finish the week at 8,636.59.
The total turnover for the week stood at Tk 13.42 billion, registering a decline of 30 per cent over the previous week as last week saw four trading sessions instead of previous week's five.
The daily turnover averaged Tk 3.36 billion, which was 12.5 per cent lower than the previous week's average of Tk 3.84 billion.
Investors were most active in bank, pharmaceuticals and engineering sectors, where they captured 18 per cent, 14 per cent and 13 per cent respectively of the week's total turnover.
MTB Capital, a merchant bank said, "Investors remained outside the
market and observed the market movement as third quarter earnings of many companies started to come with mixed performance".
International Leasing Securities, a stockbroker, said the absence of any clear indication regarding the market recovery and future market momentum, most of the investors remained watchful and stayed on the sideline.
Royal Capital, in its weekly analysis said, "The market experienced value erosion for last two weeks. Many large-cap issues faced price correction whereas GP spiked this week after a material correction in last few trading days".
It said that the market risk regressed by 28.62 per cent last week compared to the week before indicating lower market risk and 12.5 per cent drop in turnover level with 28.95 points fall in DSEX better describes some are held 'wait-and-see' mode to find buy position.
Large-cap sectors showed mixed performance during the week.
The losers outpaced gainers as out of 326 issues traded, 201 closed lower, 107 advanced while 18 remained unchanged on the DSE trading floor last week.
The market capitalisation of the DSE went up slightly by 0.19 per cent as it was Tk 3,213.85 billion on the opening day of the week and it stood at Tk 3,220.02 billion on closing day of the week.
Lafarge Surma Cement dominated the week's top turnover chart with shares of Tk 1.23 billion changing hands during the week followed by Beximco Pharma, KDS Accessories, BSRM Steels and GP.
Far East Knitting and Dyeing was the week's best performer, posting a rise of 19.35 per cent while Saif Powertec was the week's worst loser, plunging by 20.79 per cent.
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