The Chittagong Stock Exchange (CSE) has revised its two indices for the selective stocks, and the biannual changes take effect on 12 September.
The port city bourse on Wednesday said eight listed companies made their way to the blue-chip index CSE30 replacing eight others, while three companies entered the CSE50 – another index for 50 selective stocks – replacing three other firms.
The companies which have made their way to become a part of the elite index for the next six months are BBS Cables Ltd, Dhaka Bank, Eastern Bank, Green Delta Insurance, Pubali Bank, Sandhani Life Insurance, The Premier Bank, and Uttara Bank.
Meanwhile, Argon Denims, Bangladesh National Insurance, Bata Shoe Bangladesh, BD Finance, BSEM Steels, Delta Life Insurance, Orion Pharmaceuticals, and Ratanpur Steel Re-rolling Mills were ousted from the blue-chip club of the CSE.
CSE30 stocks made 16.63% of the CSE market capitalisation, which is 25.79% in terms of free-float market capitalisation, said the bourse.
On the other hand, Eastern Bank, Pubali Bank, and Robi Axiata have been included in the CSE50 index replacing Baraka Power, Bangladesh Shipping Corporation, and Olympic Industries Ltd.
CSE50 stocks account for 57.84% of CSE market capitalization, which is 60.58% in terms of free-float market capitalization.
Company shares that can be traded without any prior declaration are called free-float shares, mainly owned by general investors who do not hold a significant part of the company.
CSE50 stocks contributed to over 57% of the average daily trading turnover in the past six months at the CSE.
Constituent scrips of selective indices generally gain investors' confidence as they proceed through the bourses' index committee's screening criteria that include the company's business performance, and also stock liquidity.