Dhaka, Bangladesh (BBN) – The Dhaka Stock Exchange (DSE) restructured two price indices and added one company to the benchmark index as part of its quarterly and semi-annual rebalancing of indices.
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.
One company, Doreen Power Generations and Systems, has met all criteria of quarterly IPO addition and qualified as eligible constituent of DSEX that will be effective from July 24 (Sunday), the DSE said in a statement.
With the inclusion of Doreen Power, which was listed on April 6, the DSEX will have 235 companies from July 24.
Also, four companies will replace four others to join the DS30 index after the semi-annual rebalancing of the index, as per criteria set by S&P Dow Jones Indices.
The companies that will be included on Sunday are: National Bank, Meghna Petroleum, Bangladesh Steel Re-Rolling Mills and Singer Bangladesh and the companies to be excluded are: Pubali Bank, United Airways (BD), Aftab Automobiles and Khulna Power Company. The premier bourse 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.