12 listed firms catapulted into billion-dollar clubs

The unprecedented rally in the stock market has spawned 12 firms into the billion-dollar club to date based on market capitalisation, data compiled from Dhaka Stock Exchange showed.

The increase in the number of companies with one billion-dollar market cap was more than double compared to five such companies last year when all indices of the prime bourse hit all-time highs and the value of taka depreciated by 0.53 per cent against the greenback.

Market capitalisation is equal to the share price multiplied by the number of shares outstanding.

The new seven companies that joined the billion-dollar club as of Monday are: Walton Hi-Tech Industries, Robi, Beximco, Beximco Pharmaceuticals, Investment Corporation of Bangladesh (ICB), LafargeHolcim and Berger Paints Bangladesh.

The five other companies that joined the billion-dollar companies last year were: Grameenphone, British American Tobacco Bangladesh (BATBC), Square Pharmaceuticals, United Power Generation and Distribution Company, and Renata Limited.

Shares of the companies have been on the rise since June of the last year when the DSE resumed trade after a 66-day suspension in line with the government’s countrywide general shutdown to curb the Covid-19 pandemic.

The DSEX, the DSE key index, yielded a nearly 90 per cent return as of Monday from March 18, 2020.

Stock analysts and brokers attributed the bull-run of the market to several factors, including falling interest rates, sluggish investment in other sectors during the pandemic, regulatory reforms, raising loan margin ratios, an amendment to initial public offering rules, and untaxed money investment opportunity in the stock market.

The Bangladesh Security and Exchange Commission (BSEC)’s an active role in maintain discipline in the market contributed to the rally of the market, according to market players. The DSE market cap hit an all-time high of Tk 5,86,319 crore on September 9. The figure was Tk 3,50,800 crore in December 2010.

In the past 11 years, the market cap rose by 67 per cent or Tk 2,35,519 crore.

The market cap of Grameenphone—the largest mobile phone operator in the country— stood at Tk 51,365 crore as of Monday, making up 9.9 per cent of the total DSE market cap.

Walton—the local electronic giant— joined the list of new billion-dollar companies after listing with the stock exchange. The company ranked second in its market capitalisation that hit Tk 37,302 crore.

BATBC, a multinational tobacco manufacturer, came third on the top list of the market cap companies. Its market capitalisation was Tk34,992 crore.

The market cap of Robi Axiata, the second-biggest mobile phone operator, stood at Tk 22,104 crore, accounting for 4.3 per cent of the total DSE market cap.

The market capitalisation of Square Pharma was Tk21,443 crore, contributing 4.1 per cent of the total market cap.

United Power’s market cap stood at Tk17,408 crore, followed by Reneta at Tk14,188 crore, Beximco Limited at Tk11,944 crore, ICB at Tk 10,709 crore, Beximco Pharmaceuticals at Tk 10,483 crore, LafargeHolcim at Tk 9,232 crore and Berger Paints at Tk 8,585 crore