Two DSE indices rebalanced

FE Report

The Dhaka Stock Exchange (DSE) revaluated and rebalanced its two new price indices --- DSE Board Index (DSEX) and DSE 30 Index (DS30) as per criteria set by S&P Dow Jones Indices and designed by Standard and Poor's (S&P).

In accordance with the DSE Bangladesh Index Methodology, designed by S&P Dow Jones Indices and thorough supervision by Indices Committee of DSE, three companies --- Premier Cement Mills, Golden Harvest Agro Industries and Orion Pharma have been qualified for eligible constituents in DSEX which will be effective from July 21, said a DSE press release.

The DSEX will cover a total of 202 listed companies, account for 93 per cent of total market capitalisation.

After semi-annual rebalancing of DS30, as per criteria set by S&P Dow Jones Indices, five new companies, those were not constituents of existing DS30 Index, namely Uttara Bank, Southeast Bank, Unique Hotel & Resorts Ltd, Bangladesh Submarine Cable Company and National Life Insurance Company will be included in DS30 Index.

Conversely, five existing constituents of DS30 Index, namely, MJL Bangladesh, Keya Cosmetics, United Commercial Bank, People's Leasing and Financial Services and National Bank will be excluded from the DS30 Index which will also be effective from July 21.

The DSE launched DSEX and DS30 price indices on January 28, 2013 for reflecting better calculation of market trends.

The indices, DSEX and DS30, were designed by Standard and Poor's (S&P), one of the world's leading credit-rating agencies, based on the free-float methodology used by the world's major indices.

As for DS30, 30 companies based on profitability, market capitalisation and share size were selected, with the companies changed every six months on the basis of performance.

On the other hands, instead of using all the shares outstanding as in full-market capitalisation, which DGEN follows, DSEX, the free-float method excludes locked-in shares held by promoters and governments.

Meanwhile, the old and flawed general index of the DSE (DGEN) will be eliminated this month, after facing a two-month delay.

The DGEN, which contains inflated points due to faulty calculation, was scheduled to continue on the trading board until April, after the launch of a new index in January 28, but it has not been removed from the trading board till now.
Share on Google Plus

About Jessica Hornberger

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.
    Blogger Comment
    Facebook Comment