The Financial Express

10 firms account for 45pc market-cap of DSE

Multinational companies contribute the most

FE Report | Published: August 16, 2019 11:20:25 | Updated: August 16, 2019 19:30:45

10 firms account for 45pc market-cap of DSE

Ten listed companies accounted for 45 per cent of total market capitalisation of the Dhaka Stock Exchange (DSE) as of June this year, thanks to their strong performance.

Grameenphone (GP), the lone listed mobile phone company, grabbed 14.33 per cent market-cap alone of the prime bourse.

GP was followed by British American Tobacco Bangladesh Company and Square Pharmaceuticals, capturing 7.17 per cent and 6.07 per cent respectively of the DSE's total market-cap.

The next three highest market-cap contributors are United Power Generation and Distribution Company, Renata and Brac Bank, grabbing 5.23 per cent, 2.81 per cent and 2.37 per cent respectively, according to the DSE data.

The four other companies are Investment Corporation of Bangladesh, Berger Paints, Marico Bangladesh and Olympic Industries, accounting for 2.35 per cent, 1.95 per cent, 1.39 per cent and 1.37 per cent respectively.

Market analysts said the multinational companies contributed the most to the DSE market-cap as they made up one-fourth of the total market-cap.

As the multinational companies (MNCs) perform well in Bangladesh, investors have huge appetite for their shares, said a leading broker.

The MNCs have been doing well due to their strong fundamental, brand value, well management and quality of products, which helped them earn more, he said.

EPS of eight multinational companies, out of eleven listed with the country's capital market, rose in January-June of 2019, compared to the same period a year ago, according to their unaudited financial statements.

For instance, three MNCs are among the top valued companies. But most of the MNCs that are doing business in Bangladesh are not listed on the market. The government should take initiatives to list the companies, he said.

"Local companies like Square Pharmaceuticals and the United Power Generation have also performed well," he added.

The total market capitalisation of the prime bourse stood at Tk 3,866 billion on August 8, 2019, the last trading session before Eid-ul-Azha holiday.

However, the DSE market-cap shed about Tk 210 billion in the past eight months (January 8 to August 8) as investors were on selling binge.

The total market cap was Tk 4,076 billion on January 8 this year but gradually came down to Tk 3,866 billion on August 8.

During the period under review, DSEX, the prime index of the DSE, also slumped 569 points or 9.86 per cent to settle at 5,201 on August 8.


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