Shares of insurance companies in Bangladesh have experienced consistent growth over the past month, bucking the trend of a lackluster market. Out of the 57 insurers listed on the Dhaka Stock Exchange (DSE), 53 have witnessed a surge in their stock prices, while one has seen a slight decline and three have remained stagnant. This upward trend is attributed to the regulator’s proposal to make insurance mandatory for all vehicles, attracting investors to general insurance stocks due to the anticipated positive impact.
Additionally, rumors of significant players entering the insurance sector have driven investors toward these stocks. However, some investors are making speculative investments based on rumors, as many stocks have shown minimal movement in recent months due to floor prices set by the regulatory authority. The rise in insurance stocks presents a welcome opportunity for investors amidst an otherwise unattractive market, which has been dampened by economic uncertainty.