Dhaka stocks suffered losses last week as investors became cautious following Moody's downgrade of Bangladesh's credit rating to B2 from B1, with a revised long-term outlook of negative from stable.

The Dhaka Stock Exchange's (DSE) benchmark DSEX index plummeted 158 points or 2.95 percent, to close at 5,197 on Thursday. 

The downturn ended a three-week rally that had added 241 points earlier. 

Other key indices also took a hit. The DS30 index, comprising 30 blue-chip companies, dropped 67 points to 1,919 in at the end of Thursday, the last trading day of the previous week. 

The Shariah-based DSES index declined 38 points to settle at 1,151.

"Market movement was driven by negative changes in the market capitalisation of bank, pharmaceuticals & chemicals, and fuel & power scrips amid positive changes in the market cap of financial institutions scrip," said Shanta Securities in its weekly market review.

Average daily turnover fell 16 percent to Tk 466 crore, reflecting reduced investor engagement.
The pharmaceuticals sector recorded the highest turnover, accounting for 13.5 percent of the week's total, followed by banking sector at 13.3 percent and textile sector at 9.8 percent. 

However, all major sectors experienced losses. The power sector suffered the most, down 3.9 percent, while banking, pharmaceuticals, and food sectors slid by 3 percent, 2.79 percent, and 2.68 percent, respectively.

Among individual stocks, Agni Systems led trading with Tk 74 crore in turnover followed by Sonali Aansh, Islami Bank, Bangladesh Shipping Corporation, and Beximco Pharma.
Some 287 stocks declined, 72 advanced, and 23 remained unchanged. 

The Chittagong Stock Exchange mirrored the trend, as its CASPI shed 296 points to close at 14,584 on Thursday.