Turnover—a key indicator of market participation—plunged 15 per cent from the previous session to Tk 6.02 billion, the lowest since April 7 this year, signalling weak investor participation.
Along with the sharp fall in turnover, the benchmark index of the prime bourse dropped to a two-month low, closing at 5,643 after losing nearly 79 points, or 1.37 per cent, as broad-based selling pressure gripped investor sentiment.
From the outset, the index remained on a downward trajectory as sector-wise sell-offs swept across the trading floor, reflecting widespread risk aversion among investors.
The persistent energy crisis continued to weigh heavily on sentiment, with factory shutdowns, production disruptions and growing reliance on costly alternative energy sources deepening concerns over industrial output and corporate profitability.
The latest development came as Fu-Wang Food announced on Sunday that it would shut its factory for six months due to inadequate gas pressure and a sharp rise in raw material prices.
Md Sajedul Islam, a director of the DSE, said the country's macroeconomic outlook was facing fresh challenges from the prevailing energy crisis, discouraging investors from putting fresh funds into equities.
The gas crisis has already disrupted operations at a good number of industrial units, while some factories have been forced to scale back production or rely more heavily on expensive alternative energy sources to keep their operations running, he said.
Moreover, the finance minister told the media that it could take at least two years to resolve the ongoing energy crisis. Investors are also concerned about renewed inflationary pressure in the coming quarter, particularly if elevated energy costs persist.
"These concerns prompted many investors to stay on the sidelines," said Islam, also the managing director of Shyamol Equity Management.
Market operators said the sharp decline in turnover reflected investors' growing caution, with many preferring to wait for clearer signs of improvement in energy supplies before taking fresh positions.
According to EBL Securities, the market faced a wave of heavy sell-offs as investors braced for a sharp earnings downturn, with the prolonged nationwide gas and electricity crisis showing no sign of an early resolution.
Prevailing geopolitical tensions in the Middle East also continued to weigh on investor sentiment, it said.
The DS30 index, which tracks blue-chip stocks, plunged 14 points to 2,131, while the Shariah-based DSES index dropped 16 points to 1,124.
Market breadth remained strongly negative, with 355 issues declining against only 14 advancing, while 18 remained unchanged on the prime bourse.
Sharp Industries emerged as the most-traded stock, with shares worth Tk 263 million changing hands. Saiham Textile, ML Dyeing, Far Chemical and Paramount Textile followed in terms of turnover.
All sectors ended lower, with power suffering the steepest loss of 2 per cent, followed by non-bank financial institutions, engineering, food, banking, pharmaceuticals and telecom.
The Chittagong Stock Exchange (CSE) also ended sharply lower. Its All Share Price Index (CASPI) plunged 174 points to 15,256, while the Selective Categories Index (CSCX) lost 86 points to 9,309.
