Bangladesh, Oct. 1 -- Stocks retreated on Thursday, snapping a one-day recovery, as persistent investor caution over corporate earnings and broader economic pressures pushed the market indices back into negative territory.

Market participants said the renewed weakness reflected a combination of higher domestic fuel prices, tight monetary conditions and renewed pressure in global oil markets.

The Bangladesh Bank's decision to keep its policy rate unchanged at 9.5 per cent until December also reinforced expectations that borrowing costs would remain elevated for some time.

A prolonged tight monetary stance could keep corporate financing costs high and limit the scope for an investment-led recovery. It could also make fixed-income instru...