Global Insurance stocks soar 18% on dividend declaration   

The share price of Global Insurance Limited soared 18% on Tuesday after the company declared dividends for its shareholders for the year 2020. 

Usually, the price of a share of up to Tk200 can increase to a peak of 10% in a single day.

But when a company declares dividends, there is no limit to its share price for a particular day.

The share price of Global Insurance rose to Tk66.40 each, from Tk56.16 on Wednesday, after the company declared a 10% cash dividend.

That means shareholders will get Tk1 against each share, but the share price of this company rose by Tk10.3 in a single day.

In the previous year, the insurer paid a 10% dividend – 5% cash and 5% stock.

According to its financial information, Global Insurance profits have increased 60% compared to the previous year.

In 2020, the company posted a profit of Tk6.20 crore and earnings per share (EPS) stood at Tk1.53, which was Tk3.89 crore and Tk0.96 respectively in the previous year.

The company said its annual general meeting will be held on 14 August on a digital platform and its recording date has been set for 22 June.

Global Insurance Ltd, incorporated in 2000, listed on the stock exchanges in 2005.

As of 30 April 2021, sponsors and directors held 35.67%, institutional investors 21.21%, and the general public, 43.12% shares of the company.