The Dhaka Stock Exchange (DSE) restructured two price indices -- DSE Broad Index (DSEX) and DSE 30 Index (DS30) and added one company to the DSEX, a move that will help gauge the market more accurately.
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.
"Matin Spinning Mills Ltd has met all the criteria of quarterly initial public offering (IPO) addition and qualified as eligible constituent of DSEX which will be effective from July 20, 2014," the DSE said in a statement Wednesday.
The restructuring will take place in every quarter and the DSEX will have 227 companies in line with the latest addition. The DSEX will cover a total of 227 listed companies.
Meanwhile, three existing companies will be excluded from the DS30 as they failed to meet certain criteria after the semi-annual rebalancing of the index. Also, three companies will join the DS30 index.
The companies that wil l be included are: Bangladesh Export Import Company Ltd (Beximco), National Bank Ltd and Advance Chemical Industries (ACI) Ltd will be included in DS30 Index. And the companies to be excluded are: United Airways (BD) Ltd, Uttara Bank Ltd and R N Spinning Mills Ltd.
The DSE 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.
On the other hands, instead of using all the shares outstanding as in full-market capitalisation, which DGEN followed, DSEX, the free-float method excludes locked-in shares held by promoters and governments.
