Stocks ended flat today and investors’ participation was also almost the same compared to the previous day as people have adopted a wait-and-see policy amid rising Covid-19 infections.
Insurance leads stocks’ gain
Star Business Report
Star Business Report
Insurance stocks led the capital market yesterday thanks to a regulatory order to abide by rules, including maintaining the minimum paid-up capital requirement.
The DSEX, the Dhaka Stock Exchange s (DSE) benchmark index, rose 19 points, or 0.32 per cent, to 5,820 yesterday.
Among the listed 49 insurance stocks, 46 advanced and the rest remained unchanged.
The Insurance Development and Regulatory Authority (IDRA) issued an order on January 17 asking all insurance companies to raise sponsor shareholdings to 60 per cent and maintain a minimum paid-up capital of Tk 30 crore to 40 crore.
The regulator also asked them to inform of compliance within 30 working days.
The seven loss-incurring companies deal with producing sugar, motorcycles, hotel services, cables and glass sheets.
A big number of government run companies are not giving any dividends for many years so the stocks are providing nothing to their investors, said stock investor Abdul Alim.
Renwick Jajneswar and Usmania Glass did not provide any dividend for the last two years.
Moreover, Shyampur Sugar and Zeal Bangla Sugar have not paid any dividends in at least for the past two decades, the DSE data shows.
The state-run sugar mills are 60 years old but their economic lifespan ended at least 30 years ago, said Sanat Kumar Saha, chairman of the Bangladesh Sugar and Food Industries Corporation (BSFIC).