Stocks gain riding on general insurers

Stocks extended the winning streak for the second straight week to Thursday, as smart investors showed buying interest, particularly in general insurance, in anticipation of short-term gains.
The investors shifted their focus towards the insurance sector, buoyed by the news that the government has granted approval to the introduction of 'bancassurance' in the country, market operators said.
On Tuesday, the government has given nod to launch 'bancassurance', a model of selling insurance products through banking channels.
Following the news, the insurance sector got some momentum as investors showed their buying interest heavily in the insurance stocks in anticipation of short-term profit, said a stockbroker.
As a result, almost all general insurance shares closed higher, with six featuring in the weekly top gainers' list, generating a 10.80 per cent return in the outgoing week.
On the other hand, some low-cap stocks, which saw sharp gain in the past few days, experienced price correction during the week as cautious investors opted to book short-term profit.
Small-cap stocks such as Fu-Wang Food, Fu-Wang Ceramic, Generation Next Fashion and Central Pharma dominated the weekly top losers' chart.
Of the five trading days this week, two sessions posted gains while three suffered losses.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), climbed 24.51 points to settle the week at 6,365.61. DSEX added nearly 31 points in the past two weeks.
The DSES index, which represents Shariah-based companies, also advanced 3.76 points to 1,383. However, the DS30 Index, which comprises blue-chip companies, saw a fractional loss of 0.24 point to close at 2,496.
Turnover, a crucial indicator of the market, also rose to Tk 47.35 billion in total, up from Tk 42.57 billion in the week before.
The average daily turnover stood at Tk 9.47 billion in the outgoing week as against Tk 8.51 billion in the previous week.
Investors were mostly active in the food sector, capturing 18 per cent of the week's total turnover, followed by general insurance (11 per cent) and engineering (10 per cent).
Stocks extended its gaining streak amid choppy trading, as investors opted to take positions in the sector-specific lucrative stocks ahead of the earnings season, said EBL Securities, in its weekly analysis.
The market opened on a highly positive note this week, with the benchmark index surging to an eight-month high, primarily fuelled by the resurgence of some fundamental shares, combined with the prolonged interest in trendy ones, said the stockbroker.
However, the initial gains in the first session were eroded by two subsequent sessions of profit booking, while a partial recovery in the remaining sessions, primarily led by general insurance stocks, helped the market to settle in green territory, added the stockbroker.
Of the 394 issues traded, 118 closed higher, 23 ended lower and 197 issues remained unchanged during the week on the DSE trading floor.
Fu-Wang Food kept its dominance in the weekly turnover charts with shares worth Tk 3.10 billion changing hands.
Janata Insurance was the week's top gainer, registering an increase of 44.10 per cent while Rupali Life Insurance was the worst loser, shedding 27.4 per cent.
The Chittagong Stock Exchange (CSE) also ended higher, with the CSE All Share Price Index (CASPI) gaining 47 points to settle at 18,779 and the Selective Categories Index (CSCX) rising 40 points to close at 11,228.
Of the issues traded, 99 advanced, 76 declined, and 138 issues remained unchanged on the CSE.
The port city's bourse traded 31.24 million shares and mutual fund units with turnover value worth Tk 801 million.

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