The board of directors of Dhaka Stock Exchange on Monday decided to withdraw the old key index of the bourse, DGEN, from its web site from August 1
as the index provides misleading impression of the market.
The DSE on January 28 introduced two new indices — DSEX and DS30 — on the basis of free-float method developed by the Standard and Poor’s.
The DSE then said that the DGEN would be replaced by the DSEX after three months when the investors would become familiar with the new index.
The DSE continued to show the DGEN on the web site as they decided to keep it for another three months.
But the DSE decided to withdraw the index as the DGEN showed huge fall on Thursday and Sunday in the bourse compared with the new key index of the bourse, DSEX.
The DSEX lost 241 point in the last four trading sessions while the DGEN lost 416.56 points.
DSE president Ahsanul Islam said, ‘We have decided to stop showing the DGEN on the DSE web site from August 1 as the index provides misleading information about the market.’
The flawed computation of the index first came to light following the debut of Grameenphone on the stock market in November 2009 when the DSE general index gained more than 700 points in a single day.
A Bangladesh Securities and Exchange Commission committee in 2010 proposed that the DSE should introduce free-floating index to remove the flaws in the calculation process.
-With New Age input
