Stocks rebound as insurers show momentum

Stocks rebounded on Wednesday, a day after a sharp fall in the previous session.

The market was in the negative territory for a while in the early trade but started to gain steadily at close riding on insurance companies.

The benchmark DSEX index closed up almost 39 points or 0.71% to 5,461.

Other indices, the Shariah-based DSES index gained 3 points or 0.28% to 1,249 and the blue-chip DS30 index rose 19 points or 0.95% to 2,112.

News of better-than-expected dividend declarations helped continue to drive insurance shares higher. Out of 50 listed insurance companies, 40 closed positive, 4 negative, six remained unchanged. Seven companies led by City General Insurance gained more than 9%.

Pharma stocks edged lower on profit-booking, ending their rally after the news that Bangladesh will buy Russia’s Sputnik V Vaccine following India’s failure to supply the doses as per the agreement.

“Yet, investors were still struggling to gain clarity on the extent of the economic damage wrought by the Covid,” said an analyst.

Cement stocks led by Heidelberg Cement that gained over 8% also shined.

Turnover increased by over 14% to Tk 940 crore over the previous session. The general insurance sector dominated the turnover chart and accounted for 36.39% of total turnover. Block trades contributed 9.3% of the overall market turnover.

Among other major sectors, NBFI, telecommunication, engineering, energy, and banks saw a moderate rise.

Beximco that rallied 5.3% was the most traded share with a turnover of Tk 90 crore, followed by LafargeHolcim, BATBC, Beximco Pharmaceuticals, Lanka Bangla Finance, National Feed Mills, Federal Insurance, BD Finance, and Robi.