Revised index of DSE blue chip shares launched
Friday, 20 July 2007
FE Report
DSE-25, the revised index of the blue-chip shares of Dhaka Stock Exchange (DSE) has been launched on trial basis.
"The revised index of the blue-chip shares with five more listed companies in addition to the existing 20 is being shown offline and after the board approval, it will be officially launched shortly," a DSE source told The FE Thursday.
DSE-25 will reflect the price movement of the top companies in a more accurate way.
The DSE-25 will include new companies from IT, insurance and service sectors for the first time since the inception of DSE-20 from January 2001.
Meanwhile, DSE has also completed sector-wise index comprising 16 sectors. The sectors are bank, investment, fuel & power, food, engineering, cement, insurance, IT, jute, paper & printing, ceramic, tannery, pharmaceutical, textile, service & real estate and miscellaneous.
"We have to accommodate more listed companies in the index portfolio as the number of the companies have risen to 260 until June 2007 from 221 in early 2001," the DSE source said replying to the query of the reasons of raising the number of companies in the DSE-25 index.
DSE introduced the DSE-20 index from January 1, 2001 comprising the blue-chip shares with a base index of 1000 as on January 1, 2000.
Since then, the index has been revised on two occasions, once in 2002 and later in 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 of DSE-25 index are earning per share, minimum market capitalisation worth Tk 200 million, retaining 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, regular holding of annual general meetings and sectoral representation are the other key qualifications for becoming eligible for inclusion in the index.
Apart from 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 Z-category and is calculated on the basis of price movement of individual stocks.
On the other hand, DSI includes all securities and is calculated on the basis of price movement of individual stocks.
"The sector-wise index will also be approved in the board meeting in near future ahead of final launching," the DSE source said.
The source said once launched, the sector-wise index will help investors take proper investment decisions quickly.
DSE-25, the revised index of the blue-chip shares of Dhaka Stock Exchange (DSE) has been launched on trial basis.
"The revised index of the blue-chip shares with five more listed companies in addition to the existing 20 is being shown offline and after the board approval, it will be officially launched shortly," a DSE source told The FE Thursday.
DSE-25 will reflect the price movement of the top companies in a more accurate way.
The DSE-25 will include new companies from IT, insurance and service sectors for the first time since the inception of DSE-20 from January 2001.
Meanwhile, DSE has also completed sector-wise index comprising 16 sectors. The sectors are bank, investment, fuel & power, food, engineering, cement, insurance, IT, jute, paper & printing, ceramic, tannery, pharmaceutical, textile, service & real estate and miscellaneous.
"We have to accommodate more listed companies in the index portfolio as the number of the companies have risen to 260 until June 2007 from 221 in early 2001," the DSE source said replying to the query of the reasons of raising the number of companies in the DSE-25 index.
DSE introduced the DSE-20 index from January 1, 2001 comprising the blue-chip shares with a base index of 1000 as on January 1, 2000.
Since then, the index has been revised on two occasions, once in 2002 and later in 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 of DSE-25 index are earning per share, minimum market capitalisation worth Tk 200 million, retaining 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, regular holding of annual general meetings and sectoral representation are the other key qualifications for becoming eligible for inclusion in the index.
Apart from 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 Z-category and is calculated on the basis of price movement of individual stocks.
On the other hand, DSI includes all securities and is calculated on the basis of price movement of individual stocks.
"The sector-wise index will also be approved in the board meeting in near future ahead of final launching," the DSE source said.
The source said once launched, the sector-wise index will help investors take proper investment decisions quickly.