10 magical stocks that took the Dhaka bourse by storm in 2020

Buying stocks that rise multifold in a short period is every investor's dream. But it is not easy to pick up such lucrative stocks, because most stocks do not rise fundamentally in the local stock markets.

Of all the companies listed on the Dhaka Stock Exchange (DSE), 10 have given highest returns in seven months since May 31, 2020 when the DSE opened following a two-month trading suspension due to lockdowns imposed by the government to curb the spread of Covid-19.

Out of top ten best performing stocks, six came from the insurance sector. We analyse these companies to find out why their stocks have been so buoyant.

Asia Insurance

Its share price skyrocketed 510 percent to Tk 104 on its floor price of Tk 17 between December 27 and May 31. The company reported that its EPS jumped 275 percent to Tk 1.65 in July-September quarter compared a year ago.

Zeal Bangla Sugar Mills

Its share price climbed 355 percent to Tk 144 on its floor price of Tk 31.6 during the period. The company reported that its negative EPS widened to Tk 19.36 in July-September quarter from Tk 19.70 in the same period a year earlier.

The company’s auditor observed that it has not been able to generate profit for a few years and is unable to run its operation without government support.

Provati Insurance

The company’s share price increased 313 percent to Tk 80.10 from the floor price of 19.4 during the period. It reported that its EPS was slightly up Tk 0.58 in July-September quarter from Tk 0.53 in the same period a year ago.

Bangladesh National Insurance Company Limited (BNICL)

The company witnessed a spike of almost 306 percent to Tk 79.40 from the floor price of 17.1 during the period. It reported that its EPS almost doubled to Tk 0.81 in July-September quarter from Tk 0.45 in the corresponding period a year earlier.

Shinepukur Ceramics

Its share price rallied over 305 percent to Tk 32.40 from the floor price of Tk 8 during the period. The company reported that its third quarter EPS was Tk 0.05 from Tk 0.02 in the same period a year earlier.

Asia Pacific Insurance

The company gained 274 percent to Tk 71.10 from the floor price of Tk 19 during the period. The company reported that its third quarter EPS declined to Tk 0.50 from Tk 0.65 in the same period a year ago.

Beximco Ltd

The company’s share price rose 253 percent to Tk 45.90 from the floor price of Tk 13 during the period. Its third quarter EPS decreased to Tk 0.14 from Tk 0.31.

Paramount Insurance

The company’s share price was up 240 percent to Tk 123.50 from the floor price of Tk 36.3 during the period. It reported that its third quarter EPS jumped at Tk 3.22 from Tk 0.17 in the corresponding period a year earlier.

Eastern Insurance

Share prices of the company rose 228 percent to Tk 97.80 from the floor price of Tk 29.8. It reported that its third quarter EPS climbed to Tk 0.94 from Tk 0.60.

CAPM IBBL Mutual Fund

The company’s share prices 226 percent to Tk 22.50 from the floor price of Tk 6.9. On the close of operation on December 24, 2020, it reported Net Asset Value (NAV) of Tk 10.58 per unit on the basis of current market price on face value of Tk 10.