Price indices on the Dhaka Stock Exchange (DSE) declined sharply yesterday after the news of resignation by four advisers to the caretaker government spread.

DSE All Share Price Index went down by 25.96 points or 1.97 percent to close at 1291.89 points while DSE General Index declined by 27.11 points or 1.70 percent to close at 1566.84 points.

Besides, DSE-20, which includes blue chips, also dropped by 24.84 points or 1.78 percent to close at 1363.19 points.

On the DSE, losers overwhelmed gainers. Of the total 186 issues traded, only 23 advanced, 138 declined and 25 remained unchanged. A total number of 53,41,985 shares worth Tk 56.61 crore changed hands on the DSE yesterday.

Market analysts said at the end of a calendar year general investors usually show interests in banking stocks on expectation of

getting first-rate dividends.

"And the premier bourse started the week with a rise in prices of banking sector's shares. But, the latest political uncertainty over the advisers' resignation prompted the investors to keep themselves at bay," said a DSE broker.

DSE Senior Vice-President Ahmad Rashid Lali said the capital market must react to the political situation of the country. "If the market does not react like that, it proves there is something wrong," he added.

Meanwhile, the DSE at a board meeting on Sunday fixed March 12 for polls to elect four new directors to its board.

As per DSE charter, four of the directors retire on completion of their respective three-year terms from the board every year and the bourse holds elections to choose the same number of directors for the vacant posts.

The bourse is scheduled to hold its annual general meeting (AGM) on March 15, DSE sources said.