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Listed foreign companies shine

  • Published at 08:46 pm September 12th, 2013
Listed foreign companies shine

Listed multinational companies have recorded hefty profits in the first half of this year despite economic slowdown.

Analysts said brand reputation, well-managed and product quality have helped the foreign companies to increase the earnings.

Among the 10 listed multinational companies that account for 20% of total market capitalisation of Dhaka Stock Exchange, pharmaceutical and healthcare company GlaxoSmithKline had the biggest half-yearly earnings from January through June.

During the period, its profit stood at Tk346.5m, a steepest rise of 55% from the same period a year ago.

Berger Paintings Ltd, the top painting company, came in second, making a profit of Tk530m an increase of nearly 39% compared to the corresponding period of last year.

Grameenphone, the country’s top mobile phone operator, was the lowest profit earners as its half-yearly profit declined 47% to over Tk5bn.

It was followed by Heidelberg Cement that posted Tk862.8m profit, a marginal rise of 5% over the same period last year.

Institutions like ICB and foreign fund managers, JP Morgan, Goldman Sachs was the main investors in the foreign companies, DSE sources said.

“The multinational companies are well-managed and have reputation of their product quality, making them to earn more,” said economist Mamun Rashid.

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

Three things brand value, profitability and future prospect have driven up share prices of any company, he said. Share prices of the companies rose for their corporate performance not for economy, said Rashid.

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

In the last few months, stock prices of those companies continued to rise, as rising reserves and surplus, and positive trends in dividend declaration have attracted the investors.

Among the top multinational companies in terms of dividend declarations, BATBC declared 500% cash dividends for last year, up from 420% in 2011.

Its stock price, which was listed in 1977, rose by 88% in the last six months and closed at Tk1,564 per share Thursday. Its reserves and surplus stood at Tk6.5bn last year, according to the DSE.

Berger Paintings declared 180% cash dividends for 2012. Its reserve and surplus reached nearly Tk2bn last year.

The company was listed on the bourses in 2006 and its price surged more than 161% in the last six months and closed at Tk912 a share Thursday.