Stocks finished slightly lower Monday, extending the losing spell for the three consecutive sessions, as most of the investors remained cautious.
Analysts said the market passed another volatile session as most of the investors maintained their cautious stance ahead of budget announcement, while some are waiting for the policy changes and economic outlook in next fiscal year (FY).
Finance Minister AMA Muhith is scheduled to place the national budget for the upcoming FY 2017-18 on June 1.
"Ceramic, engineering and financial institution sector stocks witnessed buoyancy, but selling frenzy in bank, cement and fuel and power sectors stock contributed to the fall  of benchmark index," said an analyst at a leading brokerage firm.
He noted that gradual decline in turnover over the last few trading sessions indicated that investors were staying on the sidelines and observing the market movement carefully.
The market started with a positive note and the key index of the major bourse rose around 13 points within first hour of trading, but failed to continue the momentum as the session progressed.
Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), finished at 5529.51, losing 3.94 points or 0.07 per cent over the previous session.
LankaBangla Securities, a stockbroker, said, "Most of the time in the day's trading session, index held a positive position. However, during the end of the trading session, index moved downward and closed red".
The stockbroker noted that all the major sectors closed negative except engineering, financial institutions and pharmaceuticals registering marginal positive movement.
The DSE Shariah Index (DSES) also fell 2.05 points or 0.16 per cent to close at 1275.96.  However, the DS30 index, comprising the blue-chips, advanced 2.18 points or 0.10 per cent to settle at 2035.60.
Turnover, the crucial indicator of the market, continued to decline and the total turnover came down to Tk 6.32 billion, which was 14 per cent lower than the previous day's Tk 7.38 billion.
Financial institutions sector emerged as turnover leader, capturing 17 per cent of the day's total turnover value, closely followed by textile with 16 per cent and bank 14 per cent.
EBL Securities, a stockbroker, said, "The market observed a session of indecisiveness and closed marginally lower amid see-saw movements".
The stockbroker noted that the market started with correction mood that took upbeat tune after a short jump and the ups and downs continued till the end of session.
"Risk-averse investors opted to book quick-gain on stocks, especially from bank and fuel and power sectors while some opportunistic investors were busy in rebalancing their portfolio," said the stockbroker.
The large-cap sectors showed mixed performances. Engineering sector posted the highest gain of 0.32 per cent, followed by NBFIs 0.19 per cent and pharmaceuticals 0.01 per cent which remained flat.
The heavyweight bank sector witnessed the highest correction of 0.51 per cent, followed by fuel and power 0.46 per cent, telecommunications 0.12 per cent, and food and allied 0.11 per cent.
The gainers, however, took a modest lead over the losers as out of the 322 issues traded on the DSE floor, prices of 144 securities advanced, 133 declined and 45 remained unchanged.
Argon Denims emerged as turnover leader with shares of nearly Tk 203 million changing hands, closely followed by United Power, LankaBangla Finance, FAS Finance and Investment and Doreen Power.
FAS Finance was the day's top gainer, posting 9.82 per cent gain while DBH First Mutual Fund was the worst lower, losing 9.40 per cent.
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Source: The Financial Express