The indices committee of Dhaka Stock Exchange has chosen United Commercial Bank, Delta Life Insurance, Orion Pharma and Renata to include them in the bourse’s blue-chip index, DS30, replacing existing four others following criteria developed by US-based Standard & Poor’s. The decision will come into effect from January 19, a DSE new release issued on Thursday said.
As per the decision, Beximco, Khulna Power Company, Square Textiles and Southeast Bank will be replaced by the four companies.
The DSE’s committee also qualified 23 new companies to include in the bourse’s benchmark general index, DSEX, while four other companies were adjudged disqualified to remain under the index.
The companies which have been qualified are Fareast Finance, Eastern Cables, Renwick Jajneswar, National Tubes, Bengal Windsor Thermoplastics, Bangladesh Building Systems, AMCL (Pran), Rahim Textile, Ambee Pharma, The Ibn Sina, Libra Infusions, Global Heavy Chemicals, JMI Syringes and Medical Devices, Central Pharmaceuticals, Hakkani Pulp and Paper, Samorita Hospital, Information Services Network, Purabi General Insurance, Pragati Insurance, Prime Insurance, Sunlife Insurance, Usmania Glass and Berger Paints.
The companies which have been disqualified are Kay & Que, Midas Finance, CVO Petrochemical and Rahima Food.
The DSE on January 28 last year introduced two new indices — DSEX and DS30 — on the basis of free-float method developed by the Standard & Poor’s.
A minimum daily turnover of Tk 50 lakh for three consecutive months is a must to be fit for the DS30 index.
As per criteria, banks, financial institutions and insurance companies cannot have more than 10 representatives in the index.
The country’s prime bourse on July 21 last year for the first time rebalanced the DSEX and the DS30.
The bourse reviews the company’s performance in a six months interval.
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
