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The Financial Express

Ins, Z-category cos rule the roost on DSE

| Updated: September 21, 2020 14:27:19


Lankabangla and Fianancial Express Lankabangla and Fianancial Express
FE file photo FE file photo

General insurers and some 'Z'-category companies dominated the gainers' chart of Dhaka Stock Exchange (DSE) in last week following increased participation.

According to DSE information, general insurance companies, which are being traded under 'A' category, witnessed hike up to 41.30 per cent in last week.

On the other hand, some 'Z' category companies posted price hike up to 44.44 per cent in five sessions of last week on the premier bourse DSE.

Following notable price hike, the market capitalisation of general insurers advanced 8.9 per cent in five sessions of the week.

Subsequently, general insurance companies dominated the weekly turnover chart along with featuring a value of above Tk 1.64 billion which was 15 per cent higher than the weekly turnover of the previous week.

The managing director of a leading merchant bank said insurance sector witnessed a rally before the recent upward trend of the capital market.

"The ongoing rally might be occurred due to different speculations. The sponsor-directors of many insurance companies will have to purchase shares as their joint holdingsare below 30 per cent," he said.

The merchant banker also said many insurance companies have streamlined their business policy.

"But the business growth may not be like the price hikes of shares observed frequently," the merchant banker said.

Of general insurers, Provati Insurance posted the highest price hike of 41.30 per cent in last week and closed at Tk52 on Thursday.

The company posted a weekly turnover of Tk 569 million as above 12.17 million shares of the company changed hands in last week on the DSE.

Of other life insurance companies, the share price of Nitol Insurance Company advanced 31.59 per cent, Asia Pacific General Insurance Company 25.44 per cent, Asia Insurance Company 25.31 per cent, Janata Insurance Company 23.04 per cent, Peoples Insurance 22.73 per cent, Global Insurance Company 22.64 per cent and Republic Insurance Company 18.18 per cent.

Of the 'Z' category companies, the share price of C & A Textiles rose 44.44 per cent to close at Tk 3.90 each on Thursday. The company's shares worth Tk 78.05 million changed hands through 22.71 million trades.

The company's share price closed at Tk 1.70 each on August 6. Later, the share price closed at Tk 3.9 each on Thursday with a rise of 129 per cent or Tk 2.2 in 29 trading sessions.

The share price of United Airways (BD) advanced 33.33 per cent in last week to close at Tk 2.0 each.

The company's shares worth Tk 105.85 million changed hands through 58.97 trades executed in last week.

On August 6, the company's share price closed at Tk 1.4 and later rose 43 per cent or Tk 0.6 in 29 sessions and closed at Tk2.0 each.

The share price of Familytex (BD) advanced 20.59 per cent in last week and closed at Tk 4.10 each on Thursday.

Shares worth Tk 65.38 million changed hands in last week through 16.57 million trades. After August 6, the company's share price rose 95 per cent or Tk 2.0 to close at Tk 4.10 each on Thursday.

Of other 'Z' category companies, the share price of Zeal Bangla Sugar Mills rose 18.26 per cent, Golden Son 17.78 per cent, Tallu Spinning Mills 17.65 per cent, and Jute Spinners 16.94 per cent in last week.

'Z'-category companies continued rally mainly since August 6 last amid upward trend of the capital market.

Later, the securities regulator issued a directive in September for bringing discipline in operations of 'Z' category companies.

The regulatory directive included different measures such as holding annual general meeting on regular basis.

Besides, the securities regulator has taken the measure of restructuring the boards of 'Z' category companies for bringing positive changes in their operations.

Following the regulatory directive, the share price ofnon-performing 'Z' category companies continued price hikes and many companies' share prices were halted as there was no seller.

Meanwhile, the securities regulator suspended share trading of two 'Z' category companies.

The securities regulator suspended the trading of Zeal Bangla Sugar Mills due to unusual transactions and movement of price in shares.

The share trading of Beximco Synthetics has been suspended as the company applied for delisting its shares from both bourses.

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