10 of the largest listed companies in terms of market capitalization has accounted for 44 per cent of the Dhaka stock exchange’s total market-cap as of April 22, mainly due to the rising share prices of large-cap companies.
The Dhaka Stock Exchange’s total market-cap stood at approximately Tk 4,683 billion as of April 22 whereas the top 10 largest firms amounted to Tk 2,046 billion, based on the statsitics from the DSE.
Market-cap, also known as market capitalization, is calculated by multiplying the total number of a company’s outstanding shares with the current market price of the shares.
The lone listed mobile phone company and biggest market-cap company, Grameenphone, grabbed 9.72 per cent market-cap alone of the prime bourse. The Grameenphone’s total market-cap stood at Tk 454.91 billion on April 22, while its share closed at Tk 337 each.
Walton Hi-Tech Industries, which emerged as the second-largest listed company, made their trading debut on September 23, 2020.
The leading domestic electronics and appliance manufacturer’s market-cap stood at Tk 363.91 billion, attaining 7.77 per cent of the DSE’s total market-cap.
On April 22, Walton issued each of its primary shares to the public at Tk 252 which soared to Tk 1,189.70.
The merchant banker had stated that, disclosed business growth and extremely low float of shares made Walton such a hotcake in the bourses. Walton offloaded less than 1.0 per cent shares and raised a capital of Tk 1.0 billion under the book-building method.
British American Tobacco Company’s market stood at Tk 283.82 billion as of April 22 which was 6.06 per cent of the DSE’s total market-cap. The multinational company’s share price closed at Tk 523.60.
The second-largest telecom operator, Robi Axiata, emerged as the 4th highest market-cap company. Its total market stood at Tk 241.46 billion.
Robi joined the stock market on the back of the largest-ever initial public offering (IPO) in the country’s capital market history on December 24, 2020.
Approximately Tk 5.24 billion was raised by Robi from various investors including its own employees under the fixed-price method. Its share closed at Tk 45.60 on April 22.
Square Pharmaceuticals clinched the third spot in terms of market-cap worth Tk 185.62 billion, capturing 3.96 per cent of the DSE’s total market-cap. The leading pharma company’s share closed at Tk 211.90.
United Power Generation and Distribution Company grabbed 3.37 per cent market-cap as its total market-cap stood at Tk 157.85 billion. The power generation company’s shares closed at Tk 272.50 each on April 22.
According to the statistics and information available from the DSE, the next four highest market-cap companies are Renata, Beximco Pharma, Berger Paints and Investment Corporation of Bangladesh, capturing 2.53 per cent, 1.83 per cent, 1.68 per cent and 1.63 per cent respectively.
Market analysts said the multinational companies contributed the most to the DSE market-cap. They captured one-fourth of the DSE’s total market-cap.
A leading broker said all the multinational companies perform well in Bangladesh, so investors have a huge appetite for their shares.
The MNCs have been doing well due to their strong fundamentals, brand value, well management and quality of products which helped them earn more, he said.
However, the ratio of present market-cap of DSE to gross domestic product (GDP) remained low in the region as the ratio is 14 as of March 2021.