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Most MNCs see price erosion

FE REPORT | September 25, 2022 00:00:00

Most of the listed multinational companies (MNCs) saw price erosion in the previous week although the stock market closed marginally higher.

Of the 13 multinational firms listed on the local stock market, share prices of seven companies declined, ranging between 0.18 per cent and 4.50 per cent per share, in the five trading days.

Share prices of four MNCs remained unchanged while two others saw their price go up marginally, according to Dhaka Stock Exchange (DSE) data.

Market insiders said the listed MNCs witnessed price correction as profits of most multinational companies dropped in the first half of 2022 due to the depreciation of local currency against dollar and higher consumer prices.

Because of the weaker taka, the cost of imported raw materials for the foreign companies operating in the country has gone up, while rising inflation has a negative impact on sales, said a merchant banker.

Among the 13 listed MNCs, 11 firms have published their half-yearly earnings results. Of them, seven reported lower profits in the January to June period year on year.

Of the listed MNCs, share price of RAK Ceramics dropped 4.50 per cent to close at Tk 44.50 on Thursday. Its consolidated earnings per share (EPS) dropped to Tk 0.44 for April-June 2022 as against Tk 0.52 for April-June 2021.

The company's consolidated EPS was Tk 1.01 for January-June 2022 as against Tk 1.02 for January-June 2021.

Unilever Consumer Care's share price shed 3.06 per cent to close at Tk 2,864.10 on Thursday. Its EPS rose to Tk 29.32 for January-June 2022 as against Tk 18.59 for January-June 2021.

Heidelberg Cement's share price fell 1.60 per cent to close at Tk 179.10 on Thursday. The cement maker incurred a loss of Tk 3.63 per share in January-June 2022 as against profit of Tk 11.79 for January-June 2021.

Berger Paints Bangladesh's stock closed at Tk 1747.10 on Thursday, losing 1.29 per cent over the previous week.

Share price of Linde Bangladesh also shed 0.94 per cent to close at Tk 1416.20 on Thursday. Its EPS dropped to Tk 34.95 for January-June 2022 as against Tk 41.42 for January-June 2021.

LafargeHolcim Bangladesh's share price also lost 0.64 per cent to close at Tk 77.30 on Thursday.

Marico Bangladesh's stock also fell 0.71 per cent last week to close at Tk 2452.80 on Thursday. The company's EPS dropped to Tk 32.67 for April-June 2022 as against Tk 34.29 for April-June 2021.

Share prices of Grameenphone (Tk 286.6), Robi Axiata (Tk 30), British American Tobacco Bangladesh (518.70) and Singer Bangladesh (151.90) remained unchanged.

On the other hand, share prices of Bata Shoe Bangladesh and Reckitt Benckiser rose marginally by 0.90 per cent and 0.18 per cent respectively.

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