Dhaka, Bangladesh (BBN) – Chittagong Stock Exchange (CSE) on Sunday launched two new indices — CSE Shariah Index (CSI) and CSE-50 Benchmark Index (CSE-50) to be utilised by investors to track the performance of Shariah compliant securities and the market as well, officials said.
CSE Chairman Dr. Muhammad Abdul Mazid inaugurated the indices at the CSE’s Dhaka office in presence of the members of board of directors, managing director Syed Sajid Husain and other executives.
Earlier, Dhaka Stock Exchange (DSE) also launched Shahriah Index on January 20 this year.
An investor, individual or institution, are to pay fees to know the companies under the Shahriah index of premier bourse and no one can disclose the names of the companies trading in the index.
The CSE chairman on Sunday said the companies selected for the CSI have been disclosed for all so that investors can take investment decisions based on knowledge regarding the functioning trend of those companies.
India Index Services and Products Limited (IISL), a subsidiary of both the National Stock Exchange of India Limited (NSE, India) and NSE Strategic Investment Corporation, has developed the CSE-50 and CSI.
The CSE officials said Taqwaa Advisory and Shariah Investment Solutions (TASIS), an Indian company, has conducted the screening of companies selected for the CSI by analysing data of the listed companies for five years.
From 17 sectors, the TASIS selected 63 listed securities, other than mutual funds and corporate bonds, eligible as Shariah compliant stocks which represent about 48.60 per cent of the total market capitalisation and around 41.35 per cent of float-adjusted market capitalisation of the port city bourse.
TASIS has screened the stocks for CSI on the basis of its business activities. The companies having non complaint (Haram) activities are excluded from the CSI.
All noncompliant businesses such as financial services, tobacco, alcohol, pork, vulgar entertainment, manufacturer of explosives etc. are screened out.
The CSI is calculated using free float market capitalisation methodology and has a base date of July 04, 2010 indexed to a base value of 1000.
On the other hand, the CSE-50 has comprised of 50 leading and active listed securities represent about 66 per cent of the total market capitalisation and around 65 per cent of float-adjusted market capitalisation of the securities listed with the CSE.
The CSE officials said the CSE-50 has been calculated using free float market capitalisation methodology and has a base date of July 02, 2009 indexed to a base value of 1000.
Companies which have been traded for more than 75 per cent of trading days during last 6 months or from date of listing, whichever is latest, are only selected for the CSE-50.
BBN/SSR/BB-12Oct14-11:50 pm (BST)
