Panic sales triggered a massive fall in the share prices yet again yesterday after a day of brief respite.

The benchmark general index of Dhaka Stock Exchange (DGEN) shed 309 points, or 5.5 percent, to close at 5,292 points, while the Chittagong Stock Exchange slumped 501 points, or 4.9 percent, closing at9,656.

The DGEN gained 7.7 percent on Tuesday after losing 1,184 points in five days prior to that.

The investors including the institutional ones went into panic sales yesterday amid a credit crunch and a lack of confidence.

Market analysts said most of the institutional investors including merchant banks went for big sales although the finance minister asked them not to go into 'forcedsale'.

Most of the investors lost confidence although the state-owned companies moved to create a huge fund to buy shares, said market operators.

The state-owned companies on Monday declared to form a big fund to go for bulk buying of shares to bring back normalcy in the market.

The institutional investors are also inactive in the market because most of them do not have enough funds to go for the buying, they added.

Some investors arranged a milad and prayer on the DSE premises, hoping an end to the bearish trend.

The market insiders said most of the losing investors including some institutional ones decided to leave the market after incurring losses.

Most of the merchant banks were also incurring losses and failed to make new investments due to a credit crunch, said a stockbroker.

Mahmud Osman Imam, teacher of finance at Dhaka University, said, "Big sales of institutional investors pushed down the market. "The market regulator should activate the 'market making role' to bring back normalcy in the market, Osman added.

Saiful Islam, vice-chairman of BRAC EPL said, "Investors need to stop panic sale.” The market will be back in trackwithin afew days, he added.

The major sectors such as banks, NBFIs, telecommunication and power shed 6.3 percent, 4.8 percent, 6.1 percent and 4 percent respectively. The daily turnover on the DSE stood at Tk 591 crore, up by Tk 159.79 crore compared to the previous day.

Beximco topped the turnover leaders with 13.2 lakh shares worth Tk33.7 crore traded ontheday.

Social Islami Bank Ltd was the highest gainer, with a 6.2 percent rise, while Eastern Bank Ltd was the biggest loser, slumping by40.27 percent.