The Dhaka Stock Exchange has removed 10 companies from its DS30 index as the companies failed to meet the requirements set by the DSE for remaining in the blue-chip index.
The companies that were dropped from the DS30 index are ADN Telecom, Bashundhara Paper Mills, Sonali Paper and Board Mills, Trust Bank, Uttara Bank, Green Delta Insurance, Eastern Housing, Kohinoor Chemicals Company, Marico Bangladesh and Intraco Refuelling Station.
DSE officials said that the companies had enough market capitalisation, but failed to meet some of the stock trading criteria as well as turnover criteria as the market faced a prolonged bearish vibe for the past few months.
The semi-annual rebalancing was supposed to take effect on Sunday, they said.
The newly included companies into the blue-chip index are Robi Axiata, Orion Pharma, Beximco Pharmaceuticals, Linde Bangladesh, Summit Power, Power Grid Company, Pubali Bank, City Bank, Bangladesh Steel Re-Rolling Mills and GPH Ispat.
The DS30 index was designed and developed by the S&P Dow Jones Indices, and was constructed as an investable index of the exchange with 30 leading companies.
It reflects a large segment of the total equity market capitalisation.
The criteria that are considered in this index are market capitalisation, base value of the companies, financial feasibility and liquidity.
According to the Bangladesh Index Methodology of the DSE, the base value is 1,000 for the DS30 index.
The DSE has two other indices, namely DSEX, which is the key index of the market, and
DSE Shariah, which is the index for Shariah-based stock trading.
