On Dhaka Stock Exchange, the main index DSEX lost 85 points or 1.56 percent to 5349 on Sunday.
CASPI on the Chattogram Stock Exchange shed 263 points or 1.67 percent to 15486.
The bourses opened with the indexes dropping amid the rumours after another slump on Thursday.
At DSE, 242 shares and mutual funds dropped, 31 gained and 78 remained unchanged.
As many as 166 issues plummeted at the CSE while 17 rose and 48 remained unchanged.
“The investors panicked at the rumours that the stock market and everything else will be shut down because the government is announcing a general holiday amid a surge in the pandemic,” said Shakil Rizvi, a director of DSE.
The rumours of a fresh general holiday spread recently with the number of COVID-19 cases rising.
“Nothing like this will happen. The stock market will remain open if the banks are open,” said Mohammad Rezaul Karim, a spokesperson for Bangladesh Securities and Exchange Commission.
Citing Health Secretary Abdul Mannan, some media outlets on Sunday reported that the government may announce a general holiday from Mar 26 to Apr 4.
The health ministry later clarified in a notice that the news was “fake”.