The country’s main bourse, the Dhaka Stock Exchange (DSE), has delisted 10 companies from its blue-chip index, DS30, for failing to meet prescribed conditions.
The new 10 companies will be replaced in the DS30 Blue-chip list in place of these 10 companies from July 21.
The 10 new companies to be included as members of DS30 are – Beximco Pharmaceuticals, Pubali Bank, City Bank, Bangladesh Steel Re-Rolling Mills, Robi Aziata, Orion Pharma, Summit Power, Power Grid Company, GPH Ispat. and Linde Bangladesh.
On the other hand, ADN Telecom, Bashundhara Paper Mills, Eastern Housing, Green Delta Insurance, Intraco Refueling Station, Kohinoor Chemicals Company, Marico Bangladesh, Sonali Paper and Board Mills, Trust Bank, and Uttara Bank Limited will be excluded from the membership of DS30.
A decade ago, S&P Dow Jones Indices planned to create the DS30 index of 30 leading companies based on DSE’s index system. Shares of these 30 companies reflect a large portion of DSE’s market capitalization.
The criteria considered in constructing these indices are market capitalization, liquidity flow, financial performance, and fundamental value of the companies.
Companies must have a float-adjusted market capitalization above taka 50 crore as of the rebalancing reference date.
DS30 stocks must have a minimum three-month average daily trading value of taka 50 lakhs as of the rebalancing reference date.
The liquidity criteria may be reduced to Taka 30 lakh under certain circumstances to ensure that the index has sufficient components.
During each half-yearly rebalancing, if a current index component falls below taka 50 but not less than Taka 30 lakhs, the stock will remain in the index provided it also fulfills other eligibility criteria.
DS30 stocks must be profitable as measured by positive net income over the last 12-month period as of the rebalancing reference date.
The figure is calculated by adding the last four quarters of net income reported for the company.
For the DS30 index, exposure is restricted to banks, financial institutions, the insurance sector, the real estate sub-sector of services and real estate sector, pharmaceuticals, and the energy and power sector. Methodologically, the base value of the DS30 index is 1000.
Note that the Dhaka Stock Exchange currently calculates three indices – the DSE Broad Index (DSEX), the DS30, and the Shariah-based DSES Index. None of the DSE indices include mutual funds, debentures, and bonds.
Sources: DSE.
