The Dhaka Stock Exchange index committee has recommended including three new companies in its broad index, DSEX, and replacing five underperforming companies in the blue chip index, DS30.
The decision of the committee will be effective from July 21, a DSE release said.
The three companies that would be added to the DSEX are Premier Cement Mills, Golden Harvest Agro Industries and Orion Pharma.
According to the quarterly review prepared by the DSE index committee Uttara Bank, Southeast Bank, Unique Hotel and Resorts, Bangladesh Submarine Cable Company and National Life Insurance Company will be included in the DS30 index.
While the index committee recommended excluding MJL Bangladesh, Keya Cosmetics, United Commercial Bank, People’s Leasing and Financial Services and National Bank from the blue chip index.
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, the previous benchmark general index of the bourse, would be replaced by the DSEX after three months when the investors would become familiar with the new index.
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 Securities and Exchange Commission committee in 2010 proposed that the DSE should introduce free-floating index to get over the flaws in the calculation process.
-With New Age input
