Most MNCs see price gains as market rebounds

Majority of the listed multinational companies (MNCs) witnessed price appreciation on the Dhaka Stock Exchange (DSE) this week.

This price gains happened at a time when the market made modest gains, gradually recovering from the shocks experienced over the preceding two weeks.

Insiders see the favourable price movements among well-performing companies, including the MNCs, as a positive indicator for the health of the market.

Throughout the week, increased investor participation in the 'A' category companies helped the market register a significant rise in turnover, which advanced 47 per cent from the previous week.

The companies that experienced appreciation include Berger Paints Bangladesh, LafargeHolcim Bangladesh Ltd (LHBL) and Marico Bangladesh.

This collective upward movement points to positive market dynamics and suggests an emerging recovery.

"The appreciation of 'A' category companies indicates that the market has started to reduce its dependency on junk shares," said a senior official of Midway Securities.

Among the junk shares stocks, Jute Spinners and Northern Jute Manufacturing Company, which had witnessed abnormal price hikes in April and May, experienced corrections last week.

Both companies appeared on the list of weekly top losers.

Among the MNCs, Berger Paints Bangladesh started to see price appreciation from July 27 and maintained the trend till August 17.

The company saw appreciation in four out of five DSE trading sessions, with share prices ranging between Tk 1829.80 to Tk 1879.30.

Marico Bangladesh emerged from the floor price on August 7 and exhibited an upward trend till August 16. This week, the company saw a 3 per cent appreciation on the DSE.

LafargeHolcim Bangladesh experienced appreciation for three consecutive sessions until August 21. Following a correction in one session, the company closed Thursday's session with an overall rise.

Another company, Reckitt Benckiser (Bangladesh), witnessed over 2 per cent price appreciation after exhibiting an upward trend between August 6 and August 22.

This week, the company's share price declined in one session but ultimately closed higher on Thursday.

Other MNCs that saw price gains this week are Heidelberg Cement, Unilever Consumer Care and Bata Shoe.

Singer Bangladesh experienced a correction this week as its price declined to Tk 152 from Tk 153.10 last week.

Among other companies, Robi Axiata, Grameenphone, Linde Bangladesh and British American Tobacco Bangladesh Company still remain stuck at the floor price.

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