FE REPORT
Pioneer Insurance dominated the Dhaka Stock Exchange's turnover chart on Wednesday as investors continued their buying binge on the company's shares.
The share price of the insurer is also soaring without having any undisclosed price sensitive information.
Within a month, the Pioneer Insurance's share jumped more than 135 per cent or Tk39.70 each to close at Tk 69.10 on Wednesday. Its share price was Tk29.40 a month ago on July 6.
The stock market regulator's recent ultimatum on ensuring mandatory 2.0 per cent shareholding by each director of listed companies had a positive impact on the insurance stocks as most of non-compliant directors are in the insurance sector, said a stockbroker.
Recently, Bangladesh Securities and Exchange Commission has asked 61 directors of 22 listed companies to ensure a minimum 2.0 per cent shares in their own companies within 45 days to continue their directorship.
Of the 22 companies, 14 are from the insurance sector, which have 49 non-compliant directors.
To comply with the rules, many directors will have to buy shares within the 45-day time frame which boost the investors' confidence, said the broker.
The investors also mostly focused on general insurance companies as the sector accounted for more than 27 per cent of the day's total turnover with Pioneer Insurance topped the list.
According to available data with the DSE, about 4.15 million shares of Pioneer Insurance were traded, generating a turnover of Tk285 million. Its share price closed at Tk 69.10 each, soaring 9.85 per cent over the previous day.
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