The Financial Express

Insurance shares lift markets higher

Nine out of top 10 gainers belong to the insurance sector

| Updated: November 30, 2020 18:49:22

Evaly and Fianancial Express Evaly and Fianancial Express
Insurance shares lift markets higher

Stocks extended the winning streak for the fourth straight session on Sunday amid volatile trading as investors continued their bargain hunting on sector-specific stocks.

DSEX, the core index of the Dhaka Stock Exchange (DSE), went up by 12.72 points or 0.26 per cent to settle at 4,881. DSEX added 64 points in the past four consecutive sessions.

Market operators said investors continued their buying appetite on sector-specific stocks amid growing confidence in the market riding on regulatory moves to restore discipline in the market.

The optimistic investors continued their buying interest on general insurance stocks which helped the benchmark index to remain positive, said a leading merchant banker.

He noted that the bargain hunters took position on general insurance stocks driven by the positive growth in their latest quarter earnings.

The listed general insurers posted higher profits in the third quarter (July-September) of 2020 despite Covid-19 pandemic as more than 72 per cent of non-life insurers saw their profit rise during the period under review.

He also noted that the recent downturn on the market pulled down share prices of more than 75 companies to their floor prices which also encouraged some investors to take fresh positions on lucrative stocks.

The stock market regulator’s warning of restructuring the boards of the listed companies if the sponsor-directors fail to hold minimum 30 per cent shares jointly by this month, also attracted the investors, said a stockbroker.

The stockbroker, however, said many investors remained cautious amid the rising trend of Covid-19 infections and the possible impact of the second wave of the virus which might have an adverse impact on the country’s economy.

Two other indices also edged higher. The DS30 index, comprising blue chips, gained 9.09 points to finish at 1,698 and the DSE Shariah Index advanced 2.06 points to close at 1,120.

The daily trade turnover on the DSE also rose to Tk 7.66 billion, which was 1.05 per cent higher than the previous day’s turnover of Tk 7.58 billion.

Losers, however, took a modest lead over the gainers, as out of 350 issues traded, 145 closed lower, 110 higher and 95 issues remained unchanged on the DSE trading floor.

A total number of 147,288 trades were executed in the day’s trading session with a trading volume of 287.10 million shares and mutual fund units.

The DSE market capitalisation also rose to Tk 3,907 billion on Sunday, from Tk 3,905 billion in the previous day.

The insurance sector companies continued to dominate the turnover chart with six out of top 10 turnover firms belonging to the insurance sector.

Bangladesh Export Import Company (Beximco) topped the turnover list with 19.50 million shares worth Tk 494 million changing hands, closely followed by Beximco Pharma, Northern Islami Insurance, Nitol Insurance, and United Power.

The general insurance sector also dominated the day’s top gainer’s chart with nine out of top 10 gainers belonging to the sector with United Insurance was the day’s best performer, posting a gain of 10 per cent.

Kohinoor Chemicals Industries was the worst loser, losing 9.09 per cent following its price adjustment after the record date.

The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)—advancing 76 points to close at 14,038 while the Selective Categories Index – CSCX gained 46 points to close at 8,453.

Of the issues traded, 94 declined, 85 advanced and 66 remained unchanged on the CSE.

The port city bourse traded 7.74 million shares and mutual fund units with a turnover value around Tk 246 million.

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