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Stocks opened on a positive note on Sunday but the DS30 Index or blue chips suffered a big loss after revision of the index that came into effect from today.
After the latest revision, 11 big-cap companies, including the second largest telecom operator Robi Axiata, had been dropped from the DS30 list due to low transaction while some low-cap companies included the list.
Daily average turnover volumes worth less than Tk 5.0 million in the three months to June 30 is one of the reasons for the exclusion of the stocks from the index.
A blue chip is considered a recognised, fundamentally-strong company, with a well-established brand value, to have in a portfolio.
With floor prices imposed, many fundamentally-strong large cap companies have been enduring a liquidity crisis for long, which is why, experts think, the latest routine revision of DS30 is not justified.
Most of the blue-chip stocks have remained confined to the floor in absence of the market’s price discovery mechanism.
The DSEX, the benchmark index of the DSE, went up by 2.73 points to 6368 after the first hour of trading at 11:00am. The DSES index, which represents Shariah-based companies, also gained 2.38 points to 1,385.
However, the DS30 Index, which consists of blue-chip companies, slumped 19 points to 2,177 after the first hour of trading.
The daily trade turnover on the DSE stood at Tk 2.32 billion after the first hour as some investors opted to seize quick gain opportunities in sector-specific shares.
Of the issues traded, 75 gained, 84 declined and 130 remained unchanged till then.
The Chittagong Stock Exchange (CSE) saw a positive trend till then with the CSE All Share Price Index – CASPI –rising 10 points to 18,789.
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