Gamblers vomiting insu to focus Z shares again


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Gamblers vomiting insu to focus Z shares again

Prices of most of the insurance scripts have started falling as share gamblers racket already sold out their insurance share holdings, capital market expert said.
Country’s top gambling are now concentrating their focus to low paid-up based z companies shares. “Spreading several fake news on Z category share that the SEC would help restructure those companies, the gamblers are now feeding the junk shares,” Azizur Rahim, a capital market expert told Business Mirror.
Almost all Insurance companies are experience about 10 per cent capital losses over the day due the trends while Z company share are witnessing huge gain.
The stock price of almost all general insurance companies has more than doubled over the past year riding on speculation, putting the whole market at risk.
One the last trading Day Wednesday companies including Northern, United, Shandani, Reliance, Federal, Central, Islami and Janata have faced caital losses by about 9 per cent on an average.
However, during last couple of months a total of 26 general insurance companies, or 68 per cent of the sector, saw their share values more than triple during the same period.
Investors had blindly rushed towards insurance stocks without conducting a proper analysis when they see the rise in values.
There had not been any big news for the insurance sector that could have led to such a sharp spike in stock prices compared to profits.
Stocks of almost all non-life insurance companies have more than doubled over the past year while the benchmark index of the Dhaka Stock Exchange (DSE) rose 38 per cent.
Finance minister AHM Mustafa Kamal placed the proposed national budget for the financial year 2021-22 in parliament on June 3. In the budget, he proposed a 2.5-per cent cut in corporate tax for manufacturing companies, keeping it unchanged for financial sector companies.

The Bangladesh Securities and Exchange Commission on June 3 withdrew floor price restrictions on 30 more companies and set downward price change limit at maximum 2 per cent that also resulted in a fall in share prices of most of the companies.



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