The blue-chip index of the Dhaka bourse on Sunday experienced the biggest single-day fall in 10 months after some large-cap companies had been delisted in the semiannual revision of the index.
The DS30 index lost 1.12 per cent, or 24.78 points, to close at 2,172 points on the Dhaka Stock Exchange (DSE).
Earlier, it saw a loss of 2 per cent, or 47 points, on October 10, 2022 due to a sale pressure by panic-stricken investors following rumours that floor price would be withdrawn across the trading floor.
Without the rumour-driven fall, the Sunday's correction is the highest since the re-imposition of the floor price on July 28, 2022.
In rebalancing the blue-chip index, the Dhaka bourse excluded 11 companies, many of which are market leaders in terms of market cap and brand value.
They are Robi Axiata, United Power Generation & Distribution Company, Power Grid Company of Bangladesh, Titas Gas Transmission and Distribution Company, Bangladesh Steel Re-Rolling Mills, IFIC Bank, and IDLC Finance.
These companies had a significant share in the index due to notable free float shares.
On the other hand, some of the companies that replaced the excluded ones in the index are small-cap firms.
As a result, the DS30 index's overall market cap slumped.
Moreover, some of the newly-included stocks experienced price correction on the premier bourse on Sunday.
Of those, Rupali Life Insurance was the day's worst loser, having declined 9.98 per cent to Tk 140.60.
Another three newly-included companies -- Eastern Housing, Genex Infosys, and Jamuna Oil - saw price erosions by 0.28 per cent to 2.13 per cent on the DSE.
Seven more blue-chip stocks slid 0.87 per cent to 2.20 per cent.
The companies are Bangladesh Shipping Corporation, LafargeHolcim Bangladesh, Delta Life Insurance, Meghna Petroleum, Unique Hotel & Resorts, Olympic Industries, and Sea Pearl Beach Resort and Spa.
The remaining companies of the DS30 were stuck at the floor price.
The DSE revised the index based on three criteria, including minimum three-month daily average turnover of Tk 5 million.
The large-cap companies, including Robi Axiata, were excluded from the index as their turnover volumes had gone below the minimum amount. They failed to secure liquidity flow in absence of price discovery.
Experts say the premier bourse could have changed the index revision methodology considering the "odd situation" created by floor price imposed for the second time after the outbreak of the Russia-Ukraine war.
On Sunday, the DSE broad index also saw moderate correction by 23 points to close at 6,342 points.
Of the 346 issues traded, 44 advanced, 146 declined and 156 remained unchanged. The DSE posted a turnover of Tk 7.46 billion.
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