DSE flags off large-cap index
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Dhaka Stock Exchange yesterday flagged off the first of its planned three new indices developed in partnership with Shenzhen Stock Exchange as part of the country’s premier bourse’s plan to attract foreign investors.
Called the CNI-DSE Large-Cap Index, its base value is 1,000 points and the base day is December 31 of 2015. Through the index, launched at the new office of the Dhaka bourse in Nikunja, foreign investors would get an idea of how the country’s largest listed companies are faring.
At present, 40 of the largest and most liquid listed companies are on the index, but the list of companies would be reviewed in every six months.
Of the 40, 11 are banks: Brac, Eastern, National, Pubali, Al-Arafah Islami, United Commercial, Prime, Dutch-Bangla, Shahjalal Islami and City.
There are six companies from the pharmaceuticals sector, 11 from power, one from telecommunication, two from food & allied, two from cement, three from engineering, two from miscellaneous and two from the non-bank sector.
The weighted average of pharmaceuticals sector is 22.46 percent, power 18.14 percent, telecommunication 9.26 percent, food & allied 4.91 percent, cement 4.20 percent, engineering 3.20 percent, miscellaneous 3.02 percent and financial institutions 2.22 percent
The index was conceived and developed by the DSE and Shenzhen Securities Information, a subsidiary of Shenzhen Stock Exchange. Two other indices of the partnership -- CNI-DSE Mid-Cap Index and CNI-DSE Small-Cap -- will be rolled out soon.
When the strategic partnership was signed with the consortium of Shanghai and Shenzhen stock exchanges, a long-term cooperation in key areas such as technology, market cultivation and product development was planned with a view to developing Bangladesh’s capital market, said Abul Hashem, chairman of the premier bourse.
Fundamentals and liquidity as well as total market capitalisation are considered for the constituents’ screening, while free float capitalisation is used for index price calculation.
Source: https://www.thedailystar.net
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