In collaboration with Chinese strategic partner, the Dhaka Stock Exchange (DSE) is going to launch a new index that will help investors easily track capital wise price movement of stocks.
In a press release on Thursday the premier bourse told that the new index will be divided into three indices based on constituent companies' capital size – large cap, mid cap and small cap companies.
Initially the exchange is launching the index for selective 40 large cap stocks namely 'CNI-DSE Select Index (CDSET)'.
On December 30 DSE officials will inaugurate the index to publicly open it on January 1, 2020.
CDSET will look at companies market capitalisation, profitibility and secondary market liquidity to select constituents.
31st December of 2015 is selected as the base date and the base value was 1,000 points. Index committee will review the index twice a year.
This is a beginning with floating an index for large cap stocks. Gradually the DSE will launch modern indices for mid and small cap companies too, said Minhaz Mannan Emon, a Director of the exchange company's board.
Thus it will make easy for investors to track market movement based on listed companies' capital size and help avoid the generalized reading of market fluctuation, he added.
The DSE, under its ongoing collaboration program with the strategic partner Shenzhen and Shanghai Stock Exchange consortium, is implementing its technological and operational development plans .
Shenzhen Securities Information Company Ltd, a subsidiary company of Shenzhen Stock Exchange is working with the DSE to develop the new benchmarks.
The oldest and largest stock exchange of the country few years ago had entered into a collaboration with S&P Dow Jones Indices group to design and float current broad index DSEX, blue chip index DS30, and the Shariah based stock's index DSES.
After the contract ends with the US group, DSE's indexing is more likely to be in collaboration with its Chinese partners.
The DSE entered into a strategic partnership with the Shenzhen Stock Exchange-led consortium in 2018.