Insurance rally lifts DSE index

The benchmark index of the Dhaka Stock Exchange (DSE) closed marginally higher yesterday as a strong rally in insurance stocks helped pull the broader market into positive territory, despite mixed performances across other sectors. 

Investors showed renewed interest in both general and life insurance shares, which provided the key support to the market at a time when overall participation remained moderate.

The DSEX ended the session up by 4 points, or 0.09%, at 4,946, while the blue-chip DS30 index gained 1.37 points, or 0.07%, to settle at 1,899. 

Market breadth was nearly balanced, with 159 issues advancing, 156 declining and 75 remaining unchanged, reflecting a cautious but selective trading pattern. 

Turnover improved by around 10% from the previous session, rising to Tk386 crore, as investors became more active in a handful of sectors and stocks.

According to the daily market review of LankaBangla Securities, general insurance stocks dominated the trading floor, accounting for the highest share of total turnover. 

This heavy concentration of trading value underscored the renewed speculative and institutional interest in the sector. Mutual funds and pharmaceutical stocks followed, although their turnover shares were far lower compared to insurance counters, LankaBangla said.

Sector-wise, general insurance posted the strongest return of the day, rising by 2.06%, while life insurance also performed well, gaining 1.15%. These gains played a decisive role in lifting the benchmark index, as several insurance stocks experienced sharp price jumps. 

Non-bank financial institutions and pharmaceutical companies also ended the day in positive territory, each advancing by 0.29%, supported by selective buying in fundamentally strong names.

However, not all sectors shared the upbeat tone. Paper and printing stocks slipped by 0.65%, mutual funds fell by 0.64% and jute declined by 0.45%, as investors booked profits and remained cautious about near-term prospects in these segments. 

The mixed sectoral performance highlighted the lack of a broad-based rally, with the market largely driven by insurance-led momentum.

Square Pharmaceuticals, Orion Infusion, Dominage Steel, City Bank and Fine Foods emerged as the top turnover leaders, reflecting continued investor focus on liquid and widely followed stocks. 

On the gainers' board, Fareast Finance led the rally, followed by Paramount Insurance, FAS Finance, Peoples Leasing and Bangladesh Welding, many of which benefited from speculative demand. 

In contrast, Beach Hatchery topped the losers' list, while BIFC, Alif Industries, International Leasing and GQ Ball Pen also posted notable declines.

The Chittagong Stock Exchange echoed the positive trend, with both of its indices closing higher, although turnover dropped sharply to Tk5.66 crore.