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The Financial Express

Some 73pc MNCs see price erosion in 1 yr

Heidelberg Cement suffers most with 62pc loss


Babul Barman | Published: April 07, 2020 08:56:48 | Updated: April 11, 2020 09:06:44


Representational image Representational image

Multinational companies suffered losses between 7.25 per cent and 62.23 per cent in last one year until March 25 this year in tandem with the price erosion by most of the local companies.

Of the 11 multinational companies listed on local bourse, prices of eight firms witnessed price correction while three saw marginally higher trend in the last one year between March 25, 2019 and March 25, 2020, according to Dhaka Stock Exchange data.

Of the listed MNCs, Heidelberg Cement witnessed the highest price erosion, losing 62.23 per cent close at Tk 140 on March 25, 2020, the last trading session before the government-announced shutdown.

The share price of British American Tobacco Bangladesh Company (BATBC) slumped 42.17 per cent during the year under review to close at Tk 907.60 each on March 25, 2020.

Bata Shoe Bangladesh witnessed 41.27 per cent price erosion in the past one year to close at Tk 693.20 on March 25, 2020.

The share price of Grameenphone, the largest market-cap company, also saw 36.40 per cent price fall in the past one year under review to close at Tk 238.80 on March 25.

The GP stock plunged throughout the year amid tussle between GP and Bangladesh Telecommunication Regulatory Commission (BTRC) over the telecom regulator's audit claim of Tk 125.80 billion in unpaid taxes and dues.

The GP have notable impact on index movement due to its large market capitalisation which also impacted the overall market fall.

Market analysts said the continuous falling share prices triggered the panic sale during the year and the stock market is stuck well below the expected level.

Between March 25, 2019 and March 25, 2020, DSEX, the prime index of DSE, lost 1,522 points or 27.5 per cent to settle at 4,008 on March 25, 2020.

Berger Paints Bangladesh also witnessed 30.12 per cent price correction in the past one year to close at Tk 1,308.60 each on March 25, 2020.

The share price of Singer Bangladesh also declined by 19.67 per cent to close at Tk 147 each on March 25.

LafargeHolcim Bangladesh saw 11.05 per cent price fall during the year under review to close at Tk 37 each on March 25, 2020.

The share price of Reckitt Benckiser also witnessed 7.25 per cent price correction to close at Tk 3,139 each on March 25.

On the other hand, three MNCs - GlaxoSmithKline Bangladesh, Marico Bangladesh and Linde Bangladesh saw price appreciation during the year under review.

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