The stock market witnessed a fall yesterday as investors exhibited a tendency towards profit booking amidst the fear of a second wave of the coronavirus pandemic.

The DSEX, the benchmark index of Dhaka Stock Exchange, dropped 33.40 points, or 0.65 per cent, to 5,074.

Stocks of some companies witnessed an increase of 8 to 12 per cent in the past two weeks, for which many investors took to availing themselves of the profits, said a stockbroker, adding, "This is normal."

When investors take profits, their confidence grows simultaneously, increasing the depth of the market, he said.

The inclination was predominantly to sell most of the multinational and blue chip stocks because those recently rose by a higher extent, the stockbroker added.

Stocks of Reckitt Benckiser Bangladesh fell 4.63 per cent while Unilever Consumer Care 5 per cent yesterday, according to the DSE data.

Banks and non-bank financial institutions (NBFIs) also faced the same fate over apprehensions of a decline in their profits.

These financial institutions had been suffering for the last few years for accumulating a huge amount of non-performing loans (NPLs) and on top of that, the pandemic has intensified their problems, said a merchant banker.

Due to a policy support of Bangladesh Bank, banks were able to show higher profits till September, but in reality it was a different story.

The BB asked banks to refrain from classifying borrowers in the current year considering the fallouts of the pandemic.

Due to the pandemic, many entrepreneurs will face huge problems in running their business, so banks will face even more NPLs next year, said the banker.

On the other hand, the central bank has already ordered the banks to keep an extra 1 per cent in provision from what they now maintained for their unclassified loans, so bank profits must undergo a battering from this year, he added.

Among the listed 30 banks, only two witnessed a rise, four remained the same and the rest 24 dropped on the DSE boards.

Turnover, another important indicator of the stock market, stood at Tk 860 crore on the DSE yesterday which was Tk 705 crore on the preceding trading day.

Bangladesh National Insurance Company topped the gainers' list yesterday rising 10 per cent followed by Bangladesh Welding Electrodes, Shyampur Sugar Mills, Premier Cement and Continental Insurance.

Beximco saw its stocks being traded the most, worth Tk 68.51 crore, followed by Beximco Pharmaceuticals, Republic Insurance Company, Walton Hi-Tech Industries and IFIC Bank.

Of the total 358 companies traded, 81 advanced, 213 declined and 64 remained unchanged.

Dominage Steel Building Systems shed the most, losing 9.85 per cent, followed by GQ Ball Pen Industries, United Airways, Eastern Lubricants and Bangladesh Lamps.