The prime index of the Dhaka Stock Exchange (DSE), DSEX, eroded more than 395 points or 6.90 per cent in May as the market witnessed a bearish trend almost throughout the month.
Eighteen trading sessions, out of 21 in May, closed lower.
The DSE market-cap also shed more than Tk 207 billion during the month as most of the large-cap stocks saw significant price correction.
"The ongoing pessimism coupled with lack of market triggers kept investors mostly inactive, taking the market in the red zone," said an analyst at a leading brokerage firm.
Foreign investors' selling off shares also contributed to the fall, said an analyst.
Meanwhile, the capital market witnessed another bearish session, the fourth in a row, amid a day-long selling pressure on Thursday.
Merchant bankers and stockbrokers said a section of panicked investors disposed of shares, fearing further fall of stock prices.
The market started with a downward trend which continued till end of the session with no sign of reversal, finally ending more than 51 points lower.
DSEX, the benchmark index of the DSE, settled at 5,343 on Thursday, losing 51.87 points or 0.96 per cent over the previous day.
According to International Leasing, the benchmark index of the premier bourse saw sharp correction and continued its bearish trend amid panic among the investors.
The stockbroker noted that with the day's colossal correction, the prime index lost 993 points or 15.67 per cent from its highest value on November 26, 2017.
The panicked investors sold their position from almost all the large-cap sectors, especially from telecom, bank, pharmaceuticals and engineering sectors, said the stockbroker.
Some investors took position on small cap sectors' stocks, it added.
The two other indices also saw sharp decline. The DS30 index, comprising blue chips, plunged 26.79 points to settle at 1,975 and the DSE Shariah Index lost 12.74 points to close at 1,238.
Turnover, one of the most important indicators, also came down to Tk 3.62 billion, which was 21 per cent lower than the previous session's Tk 4.61 billion.
Of the issues traded, 212 declined, 80 advanced and 44 issues remained unchanged on the DSE trading floor.
Alif Industries topped the DSE turnover chart with shares worth Tk 180 million changing hands, closely followed by Square Pharmaceuticals, Beximco, Legacy Footwear and Intraco Refuelling Station.
Legacy Footwear was the day's highest gainer, posting a gain of 7.76 per cent while NCC Bank was the day's worst loser, losing 9.55 per cent.
The port city bourse CSE also ended lower with its CSE All Share Price Index - CASPI - losing 196 points to settle at 16,491 and the Selective Categories Index - CSCX - shedding 121 points to finish at 9,976 points.
Here too, losers beat the gainers as 141 issues closed lower, 50 ended higher and 14 issues remained unchanged on the CSE.
The port city bourse traded 4.98 million shares and mutual fund units worth more than Tk 200 million.
