DSE ready to launch its revised, new indices
Friday, 19 October 2007
FE Report
DSE-25, the revised index of blue-chip shares of Dhaka Stock Exchange (DSE), and a sector-wise index comprising 16 sectors will be launched soon.
'We have completed all preparations including off-line demonstration for launching these two indices,' a DSE source told the FE Thursday.
The revised index of the blue-chip shares includes five more listed companies in addition to the existing 20.
The DSE-25 will reflect the price movement of top companies in a more accurate way while the sector-wise index will help investors take proper investment decisions quickly.
The DSE-25 will include new companies from information technology (IT), insurance and service sectors for the first time since the inception of the DSE-20 on January 1,2001.
The DSE has also completed the sector-wise index comprising 16 sectors. The sectors are bank, investment, fuel and power, food, engineering, cement, insurance, IT, jute, paper and printing, ceramic, tannery, pharmaceutical, textile, service and real estate, and miscellaneous.
"We have to accommodate more listed companies in the index portfolio as the number of companies rose to 264 until mid-October this year from 221 of early 2001," the DSE source said replying to a query about the reason of raising the number of companies in the DSE-25 index.
The DSE-20 index was introduced on January 1, 2001 comprising blue-chip shares with a base index of 1000 as on January 1, 2000.
Since then, the index has been revised twice, in 2002 and 2004.
The companies which are placed under the index currently are Square Pharmaceuticals, Islami Bank Bangladesh, Prime Bank, British American Tobacco, Beximco Pharmaceuticals, Southeast Bank, Dhaka Bank, National Bank, Square Textiles, Bata Shoe, BOC Bangladesh, Singer Bangladesh, ACI Ltd, Uttara Finance, Meghna Cement, Bangladesh Lamps, AMCL (Pran), Monno Ceramic, Apex Tannery, and GQ Ball Pen.
The new criteria set for the DSE-25 index are: earning per share, minimum market capitalisation worth Tk 200 million (20 crore), minimum 30 per cent shares in public hand, minimum payment of 10 per cent dividend for the last three consecutive years and 95 per cent trading days in the last six months.
Good corporate governance, holding annual general meetings regularly and sectoral representation are the other key conditions for becoming eligible to be included in the index.
Apart from the DSE-20, the prime bourse of the country has two other indices, namely DSE General Index or DGEN, and All Share Price Index or DSI.
The benchmark index DGEN excludes companies of the Z-category and is calculated on the basis of price movement of individual stocks.
On the other hand, the DSI includes all securities and is calculated on the basis of price movement of individual stocks.
DSE-25, the revised index of blue-chip shares of Dhaka Stock Exchange (DSE), and a sector-wise index comprising 16 sectors will be launched soon.
'We have completed all preparations including off-line demonstration for launching these two indices,' a DSE source told the FE Thursday.
The revised index of the blue-chip shares includes five more listed companies in addition to the existing 20.
The DSE-25 will reflect the price movement of top companies in a more accurate way while the sector-wise index will help investors take proper investment decisions quickly.
The DSE-25 will include new companies from information technology (IT), insurance and service sectors for the first time since the inception of the DSE-20 on January 1,2001.
The DSE has also completed the sector-wise index comprising 16 sectors. The sectors are bank, investment, fuel and power, food, engineering, cement, insurance, IT, jute, paper and printing, ceramic, tannery, pharmaceutical, textile, service and real estate, and miscellaneous.
"We have to accommodate more listed companies in the index portfolio as the number of companies rose to 264 until mid-October this year from 221 of early 2001," the DSE source said replying to a query about the reason of raising the number of companies in the DSE-25 index.
The DSE-20 index was introduced on January 1, 2001 comprising blue-chip shares with a base index of 1000 as on January 1, 2000.
Since then, the index has been revised twice, in 2002 and 2004.
The companies which are placed under the index currently are Square Pharmaceuticals, Islami Bank Bangladesh, Prime Bank, British American Tobacco, Beximco Pharmaceuticals, Southeast Bank, Dhaka Bank, National Bank, Square Textiles, Bata Shoe, BOC Bangladesh, Singer Bangladesh, ACI Ltd, Uttara Finance, Meghna Cement, Bangladesh Lamps, AMCL (Pran), Monno Ceramic, Apex Tannery, and GQ Ball Pen.
The new criteria set for the DSE-25 index are: earning per share, minimum market capitalisation worth Tk 200 million (20 crore), minimum 30 per cent shares in public hand, minimum payment of 10 per cent dividend for the last three consecutive years and 95 per cent trading days in the last six months.
Good corporate governance, holding annual general meetings regularly and sectoral representation are the other key conditions for becoming eligible to be included in the index.
Apart from the DSE-20, the prime bourse of the country has two other indices, namely DSE General Index or DGEN, and All Share Price Index or DSI.
The benchmark index DGEN excludes companies of the Z-category and is calculated on the basis of price movement of individual stocks.
On the other hand, the DSI includes all securities and is calculated on the basis of price movement of individual stocks.