Star Business Report

Stock investors have continued to chase after insurance stocks despite repeated cautions issued by analysts.

Insurance stocks propelled the capital market index and turnover to eventually soar yesterday.

Its impact was the highest on the benchmark index of Dhaka Stock Exchange (DSE), the DSEX, which rose 24 points, or 0.43 per cent, to stand at 5,535.48.

The sector’s turnover accounted for 38 per cent of the overall DSE’s. It was Tk 515 crore whereas the DSE’s Tk 1,356 crore. Yesterday turnover, an important indicator of the stock market, rose 16 per cent.

Despite declaring almost the same dividend in 2020 as they had in 2019, insurance stocks are rising day by day which cannot be fundamentally acceptable, said a stock market analyst working as an asset management company’s portfolio manager.

“We are not buying any insurance stocks as we are not seeing any reasons for the rise of the insurers’ equity,” he said.