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Insurers keep broad index up in chase after short-term rallies

FE REPORT | May 18, 2023 00:00:00

Life and non-life insurers played a pivotal role on Wednesday behind the positive closure of the broad index of the Dhaka Stock Exchange (DSE).

Non-life insurers experienced the highest investor participation that led to marginal price appreciation of majority stocks of the sector.

Subsequently, the sector had the highest contribution to the daily market turnover of Tk 7.12 billion as it captured 14.2 per cent.

Life insurers contributed 13.2 per cent to the market turnover.

Apart from the insurers, the travel & leisure sector observed a significant increase in market capitalization, driven by the 5.53 per cent price hike of Sea Pearl Beach Resort & Spa.

The broad index on Wednesday displayed frequent ups and downs as a section of cautious investors opted to book profits while others took positions in sector-specific stocks.

After opening the session with a positive note, the DSEX experienced a sharp decline and later it recovered the loss as optimistic investors took positions in sector-specific stocks.

Finally, the DSEX closed at 6281.24 points with a marginal rise of 0.06 per cent or 4.04 points, extending the gaining streak for the second consecutive session.

The Shariah-based index DSES and DS30 comprising blue chip securities declined a bit on the premier bourse.

Bangladesh Shipping Corporation topped the scrip-wise turnover chart with a transaction volume of Tk 366 million, followed by Intraco Refueling Station, Sea Pearl Beach Resort & Spa and Rupali Life Insurance Company.

Sea Pearl Beach Resort had the highest contribution of 2.7 per cent in pulling the broad index DSEX.

At the end of the day's session, the DSE's turnover fell 4.34 per cent compared to the previous session.

EBL Securities said the market ended positively overcoming volatility as optimistic investors continued to take positions for short-term rallies.

The market movers such as Grameenphone, Robi Axiata, British American Tobacco Bangladesh Company and Walton Hi-Tech remained stuck at floor prices as in the previous sessions.

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