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Companies those made big mark on stock market in 2021

Fortune Shoes brought the biggest fortune for stock investors in the Dhaka Stock Exchange (DSE) in 2021. The Barishal-based synthetic footwear exporter, growing in significance in export markets while eyeing a slice of the rapidly expanding local market, saw its share price appreciate 390% in a year, from 15 December, 2020 to 15 December, 2021.

This was even before considering the 5% stock and 10% cash dividend it announced for its shareholders.The company announced slightly higher dividends and has been posting both higher sales and profits in recent quarters. Hot on its heels was conglomerate Beximco Ltd, the stock of which was the second best performer in the DSE, registering a price appreciation of 373%.

Beximco Ltd has been reporting increasingly rising earnings since the first wave of the pandemic as almost all its business divisions -- textile, IT, healthcare, and especially its new line of personal protective equipment (PPE) -- showed high revenues, while repeatedly securing new work orders.The company recently also received an eye-watering fund of Tk3,000 crore from the Sukuk market for its green projects in the solar power and textile sectors. Prior to June last year, Beximco's stock was trading below Tk20, but it shot to over Tk150 in the next 18 months.

The third name on the list, however, came as a shock for many analysts, who had already internally debated whether even the top two merited their places based on sustainable improvement in the companies' fundamentals.

Share price of Emerald Oil Industries, a scam-hit rice bran oil producer sinking in bank liabilities amid no production, rose by 263% in the DSE over the past 52 weeks, as news broke of its acquisition by Bangladesh-origin Japanese investors.

The allure of the possibility of an injection of fresh funds in exchange for a controlling stake in the company and resumption of production with a view to exporting to the Japanese market drew plenty of investors who, speculating a possible turnaround, ditched already performing publicly-listed companies.

Another scam-hit company with its production units shut, CNA Textile, saw its share price soar by 200% on news of acquisition by the directors of two other listed textile firms.

The investment expert noted that leading companies in various sectors did not get the boost during the stunning rallies that doubled the Dhaka bourse's broad-based index DSEX in just 15 months. Even a cursory glance at this year's list of top 30 stocks with at least 100% gain would show that a large number of the companies lacked smooth operations and financial track records, while some were still out of production.

Alhaj Textiles, Beach Hatchery, Dacca Dyeing, Tallu Spinning, Safko Spinning, Padma Life Insurance, Aramit Cement and some others, which had operational difficulties or poor financial performance records made it to the list.


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