• Thursday, April 24, 2014

Business

Large cap companies outperform DSE

Gazi Towhid Ahmed

The large cap firms on the Dhaka Stock Exchange outperformed the market by 9.1 percent last year on the back of solid financial performance.
Moreover, some large cap companies declared dividends ranging between 45 percent and 500 percent, DSE data showed.
In 2013, the ten largest stocks by market capitalisation gained 14.3 percent whereas DSEX, the benchmark index of the DSE, advanced 5.2 percent.
Take, for instance, British American Tobacco, the stock with the second largest market capitalisation after Grameenphone, saw net profits in the first nine months of 2013 at Tk 344 crore, up 16.22 percent year-on-year.
The largest constituent of the food sector, BAT announced 100 percent interim cash dividend for 2013. The stock gained 91 percent last year.
Delta Life Insurance rose 92.5 percent last year to barge its way into the top ten largest stocks list.
Square Pharma, also amongst the top ten stocks by market capitalisation, reported a net profit of Tk 252 crore for the six months to September, up almost 23 percent year-on-year.

It has recommended cash dividend of 25 percent and stock dividend of 30 percent for the year ended March 31, 2013.

Grameenphone, which has the largest market capitalisation, has declared interim cash dividend of 90 percent for 2013. The mobile operator gained 14.8 percent last year.
Mohammed Rahmat Pasha, managing director of BRAC-EPL, a leading stockbrokerage firm, said the top four companies are the respective sector leaders, and for most of them, demand is non-cyclical and hence, are less impacted by political unrest that affected the country in the last quarter of 2013, he said.
Among the top ten largest stocks, four declined in 2013, and all were from the financial sector: three banks and one non-bank financial institution.
“The year 2013 was a challenging year for the entire financial sector for a number of reasons. We have seen falling corporate profits and weak investor confidence, as reflected in the negative returns of stock composites for listed banks, NBFIs and general insurance.”
Deteriorating asset quality and stringent regulation significantly cut earnings of banks by 49.6 percent in the nine months to September last year, he added.

gazitowhid@gmail.com

 

Published: 12:00 am Sunday, January 12, 2014

Last modified: 9:04 pm Sunday, January 12, 2014