Dhaka Stock Exchange (DSE) has restructured two price indices and included 27 companies to the benchmark index, DSEX, a move that will help gauge the market more accurately.
The premier bourse reconstituted the indices in accordance with DSE Bangladesh Index Methodology, which was designed by S&P Dow Jones Indices, a global leader in providing investable and benchmark indices to the financial markets. The methodology is also being supervised by an indices committee of the DSE.
The restructuring takes place after annual rebalancing, and the DSEX will now have 338 companies in line with the latest reforms, which will be effective from January 23 (Sunday), the DSE said in a statement on Thursday.
The companies which will be included to the DSEX are Rahima Food Corporation, Premier Cement Mills, Appollo Ispat Complex, Tamijuddin Textile Mills, Matin Spinning Mills, Sonali Life Insurance Company, Paper Processing & Packaging, Hwa Well Textiles, Meghna Cement Mills, Monno Fabrics, Taufika Foods & Lovello Ice-cream PLC, Crystal Insurance, Dominage Steel Building Systems, Associated Oxygen, Bangladesh Monospool Paper Manufacturing Company, eGeneration, Desh General Insurance, Aramit Cement, Alltex Industries, Tallu Spinning Mills, First Finance, Mithun Knitting and Dyeing, Zeal Bangla Sugar Mills, Index Agro Industries, Jute Spinners, Meghna Condensed Milk Industries, and Meghna Pet Industries.
Also, the DSE will add five companies to the DS30 index, a list of blue-chip companies, and exclude existing five, after the semi-annual rebalancing of the index, as per criteria set by S&P Dow Jones Indices.
The companies which will be included to the DS30 are Islami Bank Bangladesh, IFIC Bank, Orion Pharma, Power Grid Company, and Fortune Shoes.
Conversely, five existing companies are excluded from the DS30 list as they failed to maintain the criteria of the blue chip index. The companies are Confidence Cement, Pubali Bank, National Bank, The ACME Laboratories and IFAD Autos.
This re-balance will also be effective from January 23 (Sunday).
The criteria for inclusion in DSEX includes a company must have a float-adjusted market capitalisation above Tk 100 million, and must have a minimum six-month average daily value traded of Tk 1.0 million as of the rebalancing reference date.
For DS30, a company must have a float-adjusted market capitalisation above Tk 500 million and must have a minimum three-month average daily value traded of Tk 5.0 million as of the rebalancing reference date.