Insurance shares suffered the sharpest sell-off on the Dhaka Stock Exchange last week as investors reacted to proposed changes to margin lending rules that could reduce financing eligibility for the sector.
The insurance sector fell 6.66 per cent, the steepest decline among all sectors, with most listed insurers ending the week in negative territory, according to Sheltech Brokerage Research.
The brokerage said in its weekly market recap that selling pressure intensified early in the week after investors grew concerned that proposed amendments to margin lending regulations could restrict borrowing against insurance shares.
The sector also remained one of the market’s most actively traded, accounting for 10.87 per cent of total turnover despite the heavy price correction.
Among the week’s biggest losers were Meghna Insurance, down 13.52 per cent, Standard Insurance, down 12.20 per cent, Provati Insurance, down 11.59 per cent, People’s Insurance, down 11.49 per cent and Republic Insurance, down 11.48 per cent.
Although broader market sentiment improved briefly during the middle of the week, insurance stocks failed to sustain a recovery as investors continued reducing exposure.
The proposed margin lending amendments remain under discussion, and investors are awaiting the regulator’s final decision before reassessing the sector.
