The country's forex market which was extremely volatile a few months back has started to ease slowly. International markets too have begun showing signs of stability.
These factors encourage investors to take positions in good stocks, such as multinational companies, said Md Ashequr Rahman, managing director of Midway Securities.
Some multinational companies (MNCs), which remained stuck at floor prices for long, have been moving upward on the Dhaka Stock Exchange.
The stocks, which are witnessing price appreciation, are capable of meeting earning expectations in foreseeable future, Mr Rahman said.
Shares of Heidelberg Cement Bangladesh continued to trade at the floor price of Tk 179.10 since September 22 last year. The stock started moving up on April 24 this year.
It scaled up for six sessions in a row to close at Tk 321.6 on Wednesday.
Some other multinational companies also experienced price appreciation in recent times.
The volume of daily share transactions of the multinational companies is yet to be significant but new funds are being injected into the stocks, said Mr Rahman.
"It's a good sign for the market," he said.
The floor price earlier introduced to contain abnormal fall of stock prices turned the market almost illiquid.
While good, large-cap stocks, including multinational companies (MNCs), stayed unmoved, many small-cap companies have been swinging on the DSE for speculative trading.
The recent upward price movement of some MNCs indicates a change in the scenario, insiders said.
They are Unilever Consumer Care, Reckitt Benckiser (Bangladesh) PLC, Berger Paints Bangladesh, Bata Shoe Company (Bangladesh), and LafargeHolcim Bangladesh.
Reckitt Benckiser languished at Tk 4760.7 until April 25 this year.
It then started advancing on the premier bourse and closed at Tk 4801.9 on Wednesday.
Market operators said investors, who were participating in transactions of the MNCs, think that such companies would thrive despite the economic worries. The latest corporate earnings and dividend declaration proved that to some extent.
Unilever Consumer Care reported EPS (earnings per share) of Tk 60.64 for 2022, up from Tk. 43.80 the year before.
Bata Shoe Company earned Tk. 29.98 per share last year, against a loss of Tk 5.01 per share reported for the previous year.
Reckitt Benckiser saw a sharp growth in earnings for January-March this year.
LafargeHolcim, however, incurred a loss of Tk 4.13 per share for 2022.
Some other MNCs, such as Grameenpohe, Robi Axiata, and British American Tobacco Bangladesh Company are still stuck at floor.
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