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Listed MNCs witness mixed price trend in 2017

| Updated: January 05, 2018 10:42:30

Listed MNCs witness mixed price trend in 2017

Share prices of listed multinational companies (MNCs) witnessed mixed performances in price return in the just concluding calendar year compared to the corresponding year.

Currently, a total of 11 multinational companies are listed with the Dhaka Stock Exchange (DSE) which account for nearly 25 per cent of the total market capitalisation, according to statistics from the prime bourse.

Of them, six companies witnessed price appreciation between the range of 1.58 per cent and 66 per cent while five saw correction between 0.61 per cent and 22 per cent in the just concluded calendar year, the DSE data shows.

However, the MNCs cumulatively generated 34.3 per cent price return backed by staggering return of Grameenphone, British American Tobacco Bangladesh Company, Glaxo SmithKline and Reckitt Benckiser.

However, the cement manufacturer multinational companies were struggling to keep their earnings momentum during the concluding calendar year 2017.

GP, the largest market-cap listed company in the country's capital market witnessed the highest gain with a whopping 66 per cent year-on-year in 2017 as its opening price was Tk 285.80 and at the end of the year its price stood at Tk 470.80 on last trading day of 2017.

BATBC, followed next in terms of price rise. The company's share price rose 36 per cent to Tk 3,401.60 at the closing session of the year 2017.

Each share of Glaxo SmithKline closed at Tk 1,550.80, from the opening price of Tk 1,151.70, registering an increase of 35 per cent over the year.

Reckitt Benckiser followed next with gaining 14 per cent as its' opening price was Tk 1,560 and closed at Tk 1,776.20 in 2017.

Marico witnessed a 10.51 per cent rise over the year, followed by Bata Shoe 1.58 per cent.

Analysts said brand reputation, well-managed operations and product quality have helped the multinational companies to increase the earnings as well as profitability and prices.

"Stock prices of those companies rose as rising reserves and surplus, and positive trends in dividend declaration have attracted the investors," said an analyst at a leading brokerage firm.

He noted that the multinational companies are well-managed and have reputation of their product quality, making them to earn more.

He said investors put their fund in those companies hoping to get higher returns as their fundamentals are very strong.

Brand value, profitability and future prospect have driven up share prices of the companies which rose on their corporate performance, he added.

The multinational companies also declared a significant amount of cash dividends every year after their listing with the bourses.

Among the top multinational companies in terms of dividend declarations, Reckitt Benckiser disbursed the highest 750 per cent cash dividends for the ended on December 31, 2106.

BATBC and Berger Paints disbursed 600 per cent cash dividend each, followed by Glaxo SmithKline 500 per cent cash dividend.

Marico Bangladesh disbursed 450 per cent cash dividend, followed by Linde Bangladesh 310 per cent and Heidelberg Cement 300 per cent.

However, Heidelberg Cement, Lafarge Surma Cement, Berger paints, Linde Bangladesh and Singer Bangladesh faced price correction in 2017.

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