Insurance stocks rally: Will it continue?

Dhaka (Nov 29, 2020): Dhaka stocks closed marginally higher for the fourth consecutive session amid volatility stemming from the coronavirus spike.

However, non-life or general insurance continued to steal the show, as several insurance companies, led by United Insurance, took positions in the top gainer's list. Life insurance also attracted buyers after experiencing dull trading in several weeks.

Among other major sectors, Mutual Fund, NBFI and energy sectors faced price correction.

On Sunday, the market moved between red and green throughout the day, as the key index hit a high of 4,889 and a low of 4,866, before ending at 4,881, showing a gain of over 12 points or 0.3 percent on the Dhaka Stock Exchange (DSE).

Among other indices, the DSES Index ended almost, witnessing mere gain of 2 points or 0.18 percent to 1,120 and blue chip DS30 Index rose 9 points or 0.53 percent to 1,698.

The market remained relatively turbulent in fear of slowdown in economic activity as the coronavirus takes hold in Bangladesh and other parts of the world, according to brokers.

Turnover increased insignificantly by 1 percent to almost Tk 760 crore. Insurers accounted for more than 38 percent of the total turnover.
Losers outpaced gainers as out of the 350 issues traded, 110 closed higher, 145 declined and 95 remained unchanged.

Beximco—a flagship company of Beximco Group, occupied the top spot of turnover list, pushing Beximco Pharmaceuticals—the pharma giant of the group—to the second spot.

The next turnover leaders included Northern Insurance, Nitol Insurance, United Power, Reliance Insurance, Prime Insurance and Bangladesh Submarine Cable and Company Ltd.

Kohinoor Chemical was the top loser, followed by Bangladesh Industrial Finance Company or BIFC, Queen South Textile Mills, Doreen Power, Power Grid, BD Lamps and Aramit Cement.