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The key index’s record-breaking rally has pushed the market capitalisations of billion-dollar companies by 14.68 per cent or Tk 27,328 crore in 2021.
Grameenphone, the country’s largest mobile phone operator, increased its market cap by 0.66 per cent or Tk 311 crore to Tk 47,179 crore as of December 31, 2021 compared a year ago.
Walton Hi-Tech Industries, the local electronic giant, joined the ranks of the new billion-dollar companies soon after listing on the Dhaka Stock Exchange in 2021. The company ranked second in its market cap that hit Tk 40,592 crore, a 20.31 per cent from the previous year.
BATBC, a multinational tobacco manufacturer, came third on the top list of the market cap companies. It swelled its market cap by 37 per cent to Tk 29,111 crore.
Square Pharmaceuticals, United Power Generation and Distribution Company, Renata Limited, Robi Axiata, Beximco Pharmaceuticals, Investment Corporation of Bangladesh, and Berger Paints Bangladesh saw their m-caps surge during the pandemic year and become billion-dollar companies.
The combined market cap of all listed companies stood at Tk 5, 42,196 crore in 2021, up almost 21 per cent over 2020.
A company’s market capitalisation, or m-cap, is calculated by multiplying the total number of outstanding shares with the current market price of its shares.
The key index DSEX posted a robust growth of 25.08 per cent to stand at 6,756 in 2021, thanks to effective regulatory measures that managed to regain investors’ confidence. The index hit all-time high at 7,368 in October last year.
Robi, the second-biggest mobile phone operator, almost doubled its m-cap in 2021. Its m-cap stood at Tk 23,046 crore surging 47.65 per cent during the period.
Square Pharmaceuticals (down 1.82 per cent), United Power (up 4.7 per cent), Reneta ( 19.23 per cent), ICB ( up 18.73 per cent), Beximco Pharmaceuticals ( down 6.93 per cent), and Berger Paints ( up 23.1 per cent) are the names that have increased their m-caps to become billion-dollar firms in 2021.
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 opportunities in the stock market.
