Dhaka Stock Exchange has decided to include 19 new companies in its broad index, DSEX, and replace three companies in the blue chip index, DS30 as part of its annual and semi-annual rebalancing of the indexes.
In accordance with the DSE Bangladesh Index Methodology, designed by S&P Dow Jones Indices, DSEX and DS30, have been reconstituted, which would be effected from January 21, said a DSE statement on Sunday.
DSE, as a part of its semi-annual rebalance, has decided to include Eastern Bank, Meghna Petroleum and Singer Bangladesh in DS30 after excluding Bangladesh Submarine Cable Company, Pubali Bank and Jamuna Oil Company as they failed to maintain the criteria of the blue chip index.
DSEX has also been reconstituted with 283 companies after January 2018 annual rebalancing.
Total nineteen companies named by Fortune Shoes, Aamra networks, Padma Islami Life Insurance, Reckitt Benckiser, Nurani Dyeing, Shepherd Industries, Standard Insurance, Kay & Que, Aziz Pipes, Nitol Insurance, Sonar Bangla Insurance, Samata Leather Complex, Information Services Network, Zeal Bangla Sugar Mills, Imam Button Industries, Meghna Condensed Milk, Shyampur Sugar, Monno Jute Stafflers and Meghna Pet Industries will be included in the DSEX.
On the other hand, Phoenix Insurance Company failed to retain their membership in DSEX as it failed to meet the criteria of the board index.
The criteria for inclusion in DSEX includes that a company must have a float–adjusted market capitalisation above Tk10 crore, and for DS30, a company must have a float-adjusted market capitalisation above Tk 50 crore.
For DSEX, stocks must have a minimum three-month average daily value traded of Tk 10 lakh, and for DS30, it must be Tk 50 lakh as of the rebalancing reference date.