Stocks gain as insurance cos continue rising

Staff Correspondent | Published: 22:50, May 04,2021

 
 

Dhaka stocks increased on Tuesday after a slight decrease in the previous session as investors went for buying shares, especially those of insurance companies.

DSEX, the key index of the Dhaka Stock Exchange, gained 0.43 per cent, or 24.11 points, to close at 5,535.48 points on Tuesday after losing 5.65 points in the previous session.

Despite a fall in share prices of most of the companies, the market advanced on the day due mainly to a surge in share prices of insurance companies and a number of large capitalised companies, market operators said.

The insurance sector continued dominating the market trend as the sector logged 40 per cent of the day’s total turnover and share prices of the sector increased by 5 per cent on Tuesday.

Of the top 20 gainers, 17 issues were from the insurance sector.

Out of the 50 insurance companies traded, 43 advanced, four declined and three remained unchanged.

EBL Securities in its daily market commentary said, ‘Insurance stocks remain bullish as investors’ confidence in the sector continued to persist while the trading activities depicted a strong buying appetite based on increased earnings expectations and regulatory initiatives.’

‘Moreover, investors have beaten lockdown worries as they expect a minimal impact on the economy despite, an extension of ongoing lockdown,’ it said.

Among the large capitalised companies, share prices of Renata, Beacon Pharmaceuticals, Prime Bank and National Life Insurance soared on the day.

The investors’ worries over the fresh wave of Covid outbreak are decreasing as the rates of infection and fatality have witnessed a downward trend in recent days, market operators said.

Many companies’ better financial growth during the third quarter (January-March) period despite the coronavirus fallout that raised the investors’ confidence, they said.

Average share prices of mutual fund, bank and pharmaceutical sectors advanced by 3.1 per cent, 0.7 per cent and 0.5 per cent respectively.

However, many investors went on profit booking after the recent rally.

The market gained 371 points in the last 16 trading sessions with just three negative sessions.

Turnover on the DSE advanced to Tk 1,356.1 crore on Tuesday from Tk 1,159.83 crore in the previous session.

Of the 357 scrips traded on the DSE on Tuesday, 141 advanced, 147 declined and 67 remained unchanged.

DS30, a composition of 30 large capitalised companies, added 0.12 per cent, or 2.65 points, to close at 2,118.71 points on Tuesday.

Shariah index DSES rose 0.08 per cent, or 1.08 points, to settle at 1,249.24 points.

BEXIMCO led the turnover chart with shares worth Tk 158.79 crore changing hands on the day.

LafargeHolcim Bangladesh, LankaBangla Finance, Beximco Pharmaceuticals, Asia Pacific Insurance, National Feed Mills, Robi, Maksons Spinning Mills, City General Insurance and BD Finance were the other turnover leaders on the day.

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