Market Status: Closed    Sat 21 Jul 18, 8:22 AM (BST)

1JANATAMF 6.00 0
FIRST JANATA BANK MF 7,979 0.00%
1STPRIMFMF 11.40 -0.1
PRIME FINANCE 1ST MF 1,300 -0.87%
AAMRANET 84.60 4.7
AAMRA NETWORKS LIMITED 65,095 5.88%
AAMRATECH 29.80 0.4
AAMRA TECHNOLOGIES LTD. 13,769 1.36%
ABB1STMF 5.80 -0.1
AB BANK 1ST MUTUAL FUND 425 -1.69%
ABBANK 11.80 -0.1
AB BANK 16,856 -0.84%
ACI 386.90 31.1
ACI 16,605 8.74%
ACIFORMULA 180.00 1.9
ACI FORMULATIONS 4,667 1.07%
ACMELAB 94.90 1.9
THE ACME LABORATORIES LTD. 4,061 2.04%
ACTIVEFINE 33.80 2.2
ACTIVE FINE CHEMICALS 94,558 6.96%
ADVENT 39.00 1.7
ADVENT PHARMA LIMITED 44,391 4.56%
AFTABAUTO 53.00 0.3
AFTAB AUTO. 5,036 0.57%
AGNISYSL 21.30 1.2
AGNI SYSTEMS 36,643 5.97%
AIL 93.70 0
ALIF INDUSTRIES LIMITED 56,628 0.00%
ALARABANK 20.90 -0.3
AL-ARAFAH ISLAMI BANK 7,441 -1.42%
ALLTEX 9.70 0
ALLTEX IND. 8,973 0.00%
AMANFEED 65.50 0.4
AMAN FEED LIMITED 45,211 0.61%
AMBEEPHA 763.40 53.2
AMBEE PHARMA 3,627 7.49%
ANLIMAYARN 38.00 -1
ANLIMA YARN 22,350 -2.56%
ANWARGALV 119.00 -1.5
ANWAR GALVANIZING 45,278 -1.24%
APEXFOODS 240.00 0.7
APEX FOOD 9,889 0.29%
APEXFOOT 345.00 -10.1
APEX ADELCHI FOOTW. 1,908 -2.84%
APEXSPINN 162.30 -4.5
APEX SPINNING 2,300 -2.70%
APEXTANRY 209.90 5.4
APEX TANNERY 12,086 2.64%
APOLOISPAT 12.40 0.1
APPOLLO ISPAT COMPLEX LTD 111,583 0.81%
ARAMIT 580.00 30.7
ARAMIT 380 5.59%
ARAMITCEM 25.00 -0.6
ARAMIT CEMENT 2,000 -2.34%
ARGONDENIM 28.10 0.3
ARGON DENIMS LIMITED 22,610 1.08%
AZIZPIPES 232.10 -19
AZIZ PIPE 2,175 -7.57%
BANGAS 248.00 -7
BANGAS 105 -2.75%
BANKASIA 16.20 -0.5
BANK ASIA 4,400 -2.99%
BARKAPOWER 28.70 0.6
BARAKA POWER LIMITED 18,666 2.14%
BATASHOE 1,110.00 -19
BATA SHOE 120 -1.68%
BATBC 3,300.00 0
BAT BD CO 362,260 0.00%
BBS 31.60 1.5
BANGLADESH BUILDING SYSTEMS LIMITED 31,940 4.98%
BBSCABLES 101.50 6.1
BBS CABLES LTD. 213,269 6.39%
BDCOM 27.90 0.7
BDCOM ONLINE 27,990 2.57%
BDFINANCE 13.20 0
BD FINANCE 81,944 0.00%
BDLAMPS 272.00 -2
BD. LAMPS 100 -0.73%
BDTHAI 23.60 0.7
BD. THAI ALLUMINIUM 90,861 3.06%
BDWELDING 20.90 -1.2
BD WELDING 6,005 -5.43%
BEACHHATCH 12.60 -1.4
BEACH HATCHERY 15,445 -10.00%
BEACONPHAR 18.10 0.3
BEACON PHARMA 4,826 1.69%
BENGALWTL 43.10 3.9
BENGAL WINDSOR THERMOPLASTICS LIMITED 83,407 9.95%
BERGERPBL 1,290.00 12.4
BERGER PAINTS 110 0.97%
BEXIMCO 25.90 0.2
BEXIMCO LIMITED 202,399 0.78%
BGIC 19.00 0.1
BANGLADESH GENERAL INS. 233 0.53%
BIFC 6.70 -0.1
BD INDUSTRIAL FINANCE 3,400 -1.47%
BNICL 13.90 -0.3
BANGLADESH NATIONAL INSURANCE COMPANY LIMITED 500 -2.11%
BPML 139.30 -2.4
BASHUNDHARA PAPER MILLS LTD. 66,265 -1.69%
BRACBANK 65.50 -0.5
BRAC BANK 9,316 -0.76%
BSC 42.60 0.2
B.S.C. 14,634 0.47%
BSCCL 92.80 -0.7
BANGLADESH SUBMARINE CABLE CO. LTD. 4,495 -0.75%
BSRMLTD 101.90 -0.7
BANGLADESH STEEL RE-ROLLING MILLS LIMITED 33,545 -0.68%
BSRMSTEEL 71.40 0.8
BSRM STEELS 10,700 1.13%
BXPHARMA 91.00 0.5
BEXIMCO PHARMA 15,863 0.55%
BXSYNTH 8.90 -0.9
BEXIMCO SYNTHETICS 4,975 -9.18%
CAPMBDBLMF 7.70 -0.1
CAPM BDBL MUTUAL FUND 01 1,000 -1.28%
CENTRALPHL 15.60 0.2
CENTRAL PHARMACEUTICALS LIMITED 59,250 1.30%
CITYBANK 28.80 0.1
CITY BANK 19,444 0.35%
CITYGENINS 12.80 0
CITY GENERAL INSURANCE 25 0.00%
CNATEX 5.40 -0.5
C & A TEXTILES LIMITED 149,840 -8.47%
CONFIDCEM 185.70 -3.1
CONFIDENCE CEMENT 2,040 -1.64%
CONTININS 15.40 0.2
CONTINENTAL INSURANCE 61 1.32%
CVOPRL 198.00 -4.3
CVO PETROCHEMICAL 10,076 -2.13%
DACCADYE 6.30 -0.7
DACCA DYEING 44,369 -10.00%
DAFODILCOM 43.00 0.7
DAFFODIL COMPUTERS 5,722 1.65%
DBH 133.90 3.4
DELTA BRAC HOUSING 10,200 2.61%
DBH1STMF 8.70 0
DBH FIRST MF 500 0.00%
DELTALIFE 97.00 -0.2
DELTA LIFE INSURAN 50 -0.21%
DELTASPINN 8.50 0.1
DELTA SPINNERS 52,767 1.19%
DESCO 43.00 -0.1
DHAKA ELECTRIC SUPPLY 1,500 -0.23%
DESHBANDHU 20.30 0.9
DESHBANDHU POLYMER 339,690 4.64%
DHAKABANK 12.70 0.1
DHAKA BANK 22,577 0.79%
DHAKAINS 18.50 0
DHAKA INSURANCE 1,337 0.00%
DOREENPWR 110.10 -1.7
DOREEN POWER GENERATIONS AND SYSTEMS LIMITED 20,148 -1.52%
DSSL 36.00 1.9
DRAGON SWEATER AND SPINNING LIMITED 46,391 5.57%
DUTCHBANGL 114.10 -1.9
DUTCH-BANGLA BANK 110 -1.64%
EBL 31.60 0.9
EASTERN BANK 2,078 2.93%
EBL1STMF 7.20 0
EBL FIRST MF 1,167 0.00%
EBLNRBMF 5.80 -0.1
EBL NRB MUTUAL FUND 225 -1.69%
EHL 46.70 -0.3
EASTERN HOUSING 4,786 -0.64%
EMERALDOIL 11.60 -1.2
EMERALD OIL INDUSTRIES LIMITED 26,565 -9.38%
ENVOYTEX 38.90 -0.1
ENVOY TEXTILES LIMITED 12,240 -0.26%
ETL 15.70 0.4
EVINCE TEXTILES LIMITED 62,309 2.61%
EXIMBANK 11.10 -0.1
EXPORT IMPORT BANK 97,499 -0.89%
FAMILYTEX 5.90 0.1
FAMILYTEX(BD) LIMITED 135,358 1.72%
FARCHEM 16.80 0.3
FAR CHEMICAL INDUSTRIES LIMITED 52,640 1.82%
FAREASTFIN 6.40 0
FAREAST FINANCE & INVESTMENT LIMITED 1,037 0.00%
FASFIN 10.70 0
FAS FINANCE & INVESTMENT 69,869 0.00%
FBFIF 5.50 0
FIRST BD FIXED INCOME FUND 34,311 0.00%
FEDERALINS 9.00 0
FEDERAL INSURANCE 5,005 0.00%
FEKDIL 17.20 0.6
FAR EAST KNITTING & DYEING INDUSTRIES LIMITED 54,350 3.61%
FINEFOODS 36.70 -1.3
FINE FOODS 70,729 -3.42%
FIRSTSBANK 10.20 0
FIRST SECURITY ISLAMI BANK 30,204 0.00%
FORTUNE 32.30 1.3
FORTUNE SHOES LIMITED 53,103 4.19%
FUWANGCER 16.40 0.5
FU-WANG CERAMIC 68,961 3.14%
FUWANGFOOD 20.50 1.6
FU-WANG FOODS 287,326 8.47%
GBBPOWER 16.70 0.4
GBB POWER LIMITED 27,631 2.45%
GENNEXT 8.30 0.1
GENERATION NEXT FASHIONS LIMITED 351,995 1.22%
GHAIL 43.70 1.7
GOLDEN HARVEST AGRO INDUSTRIES LIMITED 98,042 4.05%
GHCL 43.60 3.9
GLOBAL HEAVY CHEMICALS LIMITED 9,980 9.82%
GOLDENSON 10.10 -0.4
GOLDEN SON 9,036 -3.81%
GP 401.40 1.7
GRAMEENPHONE 6,692 0.43%
GPHISPAT 36.80 0.1
GPH ISPAT LIMITED 17,175 0.27%
GQBALLPEN 105.00 -3.7
GQ BALL PEN 970 -3.40%
GRAMEENS2 16.30 -0.1
GRAMEEN MF TWO 9,521 -0.61%
GREENDELMF 7.60 -0.2
GREEN DELTA MF 318 -2.56%
GSPFINANCE 17.70 -0.4
GSP FINANCE (BD) LTD 8,420 -2.21%
HEIDELBCEM 355.00 -0.2
HEIDELBERG CEMENT 780 -0.06%
HFL 27.70 0.7
HAMID FABRICS LIMITED 42,635 2.59%
HRTEX 65.00 -0.3
H.R. TEXTILES 3,476 -0.46%
IBBLPBOND 917.00 2.5
IBBL MUDARABA BOND 5 0.27%
IBNSINA 312.50 24.8
IBN SINA PHARMA 7,271 8.62%
ICB 144.00 0.4
I.C.B. 5,090 0.28%
ICB2NDNRB 9.40 0.2
ICB AMCL 2ND NRB MF 31,000 2.17%
ICB3RDNRB 6.00 0
ICB AMCL 3RD NRB MF 2,200 0.00%
ICBAMCL2ND 6.90 -0.5
ICB AMCL SECOND MF 240 -6.76%
IDLC 59.00 -1.5
IDLC FINANCE 11,025 -2.48%
IFADAUTOS 115.40 5
IFAD AUTOS LIMITED 34,447 4.53%
IFIC 11.40 -0.2
IFIC BANK 84,118 -1.72%
IFIC1STMF 5.40 -0.1
IFIC BANK 1ST MF 13,536 -1.82%
IFILISLMF1 7.40 0
IFIL ISLAMIC MF-1 2,632 0.00%
ILFSL 13.00 -0.4
INTERNATIONAL LEASING 85,178 -2.99%
IMAMBUTTON 29.30 -3.2
IMAM BUTTON 1,919 -9.85%
INTECH 20.50 1
INTECH ONLINE 251,630 5.13%
INTRACO 41.20 1.6
INTRACO REFUELING STATION LIMITED 135,592 4.04%
ISLAMIBANK 22.00 -0.2
ISLAMI BANK 20,840 -0.90%
ISLAMICFIN 16.00 0.1
ISLAMIC FINANCE 3,500 0.63%
ISLAMIINS 26.90 -1.2
ISLAMI INSURANCE 64,000 -4.27%
ISNLTD 23.50 -1.7
INFORMATION SERVL NET. 2,000 -6.75%
ITC 51.20 -2.8
INFORMATION TECHNOLOGY CONSULTANTS LIMITED 45,620 -5.19%
JAMUNABANK 13.70 -0.1
JAMUNA BANK 18,129 -0.72%
JAMUNAOIL 179.00 -0.6
JAMUNA OIL 3,115 -0.33%
JANATAINS 13.10 -0.4
JANATA INSURANCE 11,869 -2.96%
JMISMDL 210.00 -10.5
JMI SYRINGES & MEDICAL DEVICES LTD. 1,700 -4.76%
KAY&QUE 202.00 -6
KAY & QUE (BD) 250 -2.88%
KBPPWBIL 17.00 0.1
KHAN BROTHERS PP WOVEN BAG INDUSTRIES LIMITED 122,550 0.59%
KDSALTD 118.00 9.6
KDS ACCESSORIES LIMITED 43,670 8.86%
KEYACOSMET 8.20 0
KEYA COSMETICS 251,773 0.00%
KPCL 72.30 -1.2
KHULNA POWER 41,110 -1.63%
KPPL 14.60 -1.6
KHULNA PRINTING & PACKAGING LIMITED 45,216 -9.88%
LANKABAFIN 25.50 -0.3
LANKA BANGLA FINANCE 226,599 -1.16%
LEGACYFOOT 200.00 3.7
LEGACY FOOTWEAR 19,395 1.88%
LHBL 54.30 -0.2
29,066 -0.37%
LIBRAINFU 1,080.00 -69.9
LIBRA INFUSIONS 328 -6.08%
MAKSONSPIN 8.70 0.3
MAKSONS SPINNING 81,700 3.57%
MALEKSPIN 19.00 1
MALEK SPINNING 1,915 5.56%
MATINSPINN 38.60 0.8
MATIN SPINNING MILLS LIMITED 50 2.12%
MEGHNALIFE 51.50 -3.6
MEGHNA LIFE INSURANCE 1 -6.53%
MERCANBANK 15.20 -0.4
MERCANTILE BANK 47,650 -2.56%
METROSPIN 9.90 0.3
METRO SPINNING 7,500 3.13%
MHSML 16.40 0.9
MOZAFFAR HOSSAIN SPINNING MILLS LIMITED 13,789 5.81%
MICEMENT 78.70 -1.5
M.I. CEMENT 649 -1.87%
MIRACLEIND 51.50 -2.3
MIRACLE INDUSTRIES 136,276 -4.28%
MITHUNKNIT 21.60 -1.1
MITHUN KNITTING 250 -4.85%
MJLBD 99.80 0.2
MJL BANGLADESH LIMITED 4,424 0.20%
MONNOCERA 373.00 -16.5
MONNO CERAMIC 3,984 -4.24%
MPETROLEUM 182.20 0.9
MEGHNA PETROLEUM 209 0.50%
MTB 31.70 0.2
MUTUAL TRUST BANK LIMITED 6,402 0.63%
NAHEEACP 51.00 1.7
NAHEE ALUMINUM COMPOSITE PANEL LTD. 35,349 3.45%
NAVANACNG 72.00 -1.5
NAVANA CNG 3,331 -2.04%
NBL 9.10 0
NATIONAL BANK 158,411 0.00%
NCCBANK 13.10 -0.5
NATIONAL CREDIT & COM. BNK 33,668 -3.68%
NCCBLMF1 6.90 0.2
NCCBL MUTUAL FUND-1 500 2.99%
NFML 17.60 0.6
NATIONAL FEED MILL LIMITED 91,657 3.53%
NITOLINS 26.10 -1.9
NITOL INSURANCE 1,185 -6.79%
NPOLYMAR 100.90 9.1
NATIONAL POLYMER 22,870 9.91%
NURANI 15.70 0.5
NURANI DYEING & SWEATER LIMITED 126,806 3.29%
OAL 16.70 0.2
OLYMPIC ACCESSORIES LIMITED 107,621 1.21%
OIMEX 41.60 1.1
OIMEX ELECTRODE LIMITED 12,619 2.72%
OLYMPIC 221.00 2.5
OLYMPIC INDUSTRIES 2,210 1.14%
ONEBANKLTD 14.90 0
ONE BANK 11,979 0.00%
ORIONINFU 65.00 2.1
ORION INFUSION 48,088 3.34%
ORIONPHARM 43.00 1.5
ORION PHARMA LIMITED 9,464 3.61%
PADMALIFE 30.30 2.7
PADMA ISLAMI LIFE INSURANCE 53,959 9.78%
PADMAOIL 225.00 2.7
PADMA OIL 1,290 1.21%
PDL 22.40 1.4
PACIFIC DENIMS LIMITED 258,238 6.67%
PENINSULA 32.70 -1.3
THE PENINSULA CHITTAGONG LIMITED 444,961 -3.82%
PEOPLESINS 17.40 -0.9
PEOPLES INSURANCE 231 -4.92%
PF1STMF 6.40 0
PHOENIX FINANCE 1ST MF 500 0.00%
PHENIXINS 21.30 0.2
PHOENIX INS. 12,000 0.95%
PHPMF1 6.10 0.1
PHP FIRST MF 4,448 1.67%
PLFSL 6.90 -0.4
PEOPLE'S LEASING 780 -5.48%
POPULAR1MF 5.50 -0.1
POPULAR LIFE FIRST MF 23,438 -1.79%
POWERGRID 47.20 -0.3
POWER GRID 1,265 -0.63%
PREMIERBAN 10.00 -0.1
PREMIER BANK 54,460 -0.99%
PREMIERLEA 10.00 -0.4
PREMIER LEASING 9,760 -3.85%
PRIMEBANK 15.00 -0.2
PRIME BANK 153,000 -1.32%
PRIMEFIN 9.50 -0.6
PRIME FINANCE 5,226 -5.94%
PRIMETEX 38.20 -0.9
PRIME TEXTILE 8,150 -2.30%
PTL 61.30 -1.7
PARAMOUNT TEXTILE LIMITED 34,478 -2.70%
PUBALIBANK 22.00 0
PUBALI BANK 3,345 0.00%
QUASEMIND 68.90 3.8
15,547 5.84%
QUEENSOUTH 64.90 0.6
QUEEN SOUTH TEXTILE MILLS LIMITED 57,195 0.93%
RAKCERAMIC 42.90 -1.4
R.A.K. CERAMICS 40,917 -3.16%
RANFOUNDRY 146.00 1.5
RANGPUR FOUNDRY 3,446 1.04%
RDFOOD 16.60 0.2
RAGPUR DAIRY & FOOD PRO 25,346 1.22%
REGENTTEX 20.50 1.6
REGENT TEXTILE MILLS LIMITED 62,038 8.47%
RNSPIN 12.10 0.3
R. N. SPINNING 54,206 2.54%
RSRMSTEEL 64.50 0
RATANPUR STEEL RE-ROLLING MILLS LIMITED 35,289 0.00%
RUPALIBANK 37.30 -0.1
RUPALI BANK 24,447 -0.27%
RUPALIINS 15.70 0.1
RUPALI INSURANCE 4,500 0.64%
RUPALILIFE 45.00 4
RUPALI LIFE INSURANCE 18,805 9.76%
SAFKOSPINN 20.30 -0.1
SAFKO SPINING 61,304 -0.49%
SAIFPOWER 25.70 0.5
SAIF POWERTEC LTD. 94,611 1.98%
SAIHAMCOT 15.30 0.4
SAIHAM COTTON MILLS LTD. 6,280 2.68%
SAIHAMTEX 23.50 1.5
SIAHAM TEXTILE 39,555 6.82%
SALAMCRST 32.00 0.8
S ALAM STEELS 14,292 2.56%
SALVOCHEM 28.20 -0.2
SALVO CHEMICAL 156 -0.70%
SAMATALETH 56.00 -5.4
SAMATA LEATHER 1,800 -8.79%
SAMORITA 82.50 2.5
SAMORITA HOSPITAL 8,090 3.13%
SANDHANINS 26.00 -0.6
SANDHANI LIFE INS. 57 -2.26%
SAPORTL 27.50 0.1
SUMMIT ALLIANCE PORT 21,153 0.36%
SHAHJABANK 22.80 -0.3
SHAHJALAL ISLAMI BANK 12,624 -1.30%
SHASHADNIM 69.00 0.4
SHASHA DENIMS LIMITED 31,613 0.58%
SHEPHERD 28.70 0.8
SHEPHERD INDUSTRIES LIMITED 98,535 2.87%
SHURWID 22.40 -0.6
SHURWID INDUSTRIES LTD. 13,636 -2.61%
SIBL 14.90 0
SOCIAL ISLAMI BANK 8,808 0.00%
SIMTEX 28.00 1
SIMTEX INDUSTRIES LIMITED 11,106 3.70%
SINGERBD 210.00 3.3
SINGER BD 33,370 1.60%
SINOBANGLA 71.40 -1.8
SINOBANGLA INDUSTRIES 48,787 -2.46%
SKTRIMS 35.00 -0.8
SK TRIMS & INDUSTRIES LTD. 368,973 -2.23%
SONARBAINS 16.20 -0.9
SONAR BANGLA INSURANCE 5,000 -5.26%
SONARGAON 17.40 -1.9
SONARGAON TEXTILE 11,150 -9.84%
SOUTHEASTB 13.60 -0.1
SOUTHEAST BANK 16,898 -0.73%
SPCERAMICS 18.60 -1.5
SHINEPUKUR CERAMICS 38,812 -7.46%
SPCL 106.00 1.7
SHAHJIBAZAR POWER CO. LTD. 40,838 1.63%
SQUARETEXT 50.80 -0.2
SQUARE TEXTILES 602 -0.39%
SQURPHARMA 280.50 1.1
SQUARE PHARMA 11,079 0.39%
STANDBANKL 10.80 -0.1
STANDARD BANK 10,756 -0.92%
SUMITPOWER 40.90 1
SUMMIT POWER 53,565 2.51%
SUNLIFEINS 20.60 -1.4
SUNLIFE INSURANCE COMPANY LIMITED 27 -6.36%
TALLUSPIN 7.00 -0.4
TALLU SPINNING 2,085 -5.41%
TITASGAS 38.50 -0.2
TITAS GAS 7,617 -0.52%
TOSRIFA 21.90 1.4
TOSRIFA INDUSTRIES LIMITED 9,020 6.83%
TRUSTB1MF 6.00 0
TRUST BANK FIRST MF 42,165 0.00%
TRUSTBANK 25.00 -1.5
TRUST BANK 12 -5.66%
TUNGHAI 6.60 -0.2
TUNG HAI KNITTING AND DYEING LIMITED 27,286 -2.94%
UCB 16.20 0.2
U.C.B.L. 21,344 1.25%
UNIONCAP 12.70 -0.1
UNION CAPITAL 4,871 -0.78%
UNIQUEHRL 51.60 0.4
UNIQUE HOTEL & RESORTS LTD. 726 0.78%
UNITEDAIR 4.00 -0.4
UNITED AIRWAYS 213,357 -9.09%
UPGDCL 315.00 7.1
UNITED POWER GENERATION & DISTRIBUTION COMPANY LIMITED 2,717 2.31%
USMANIAGL 159.50 -4.8
USMANIA GLASS 5,918 -2.92%
UTTARABANK 23.50 0.4
UTTARA BANK 6,555 1.73%
UTTARAFIN 56.00 0.5
UTTARA FINANCE 29 0.90%
WATACHEM 305.00 2.7
WATA CHEMICALS LIMITED 21 0.89%
WMSHIPYARD 29.60 1.2
WESTERN MARINE SHIPYARD LIMITED 115,448 4.23%
YPL 17.90 1.2
YEAKIN POLYMER LIMITED 50,926 7.19%
ZAHEENSPIN 15.50 0
ZAHEEN SPINNING LIMITED 18,610 0.00%
ZAHINTEX 14.40 0.1
ZAHINTEX INDUSTRIES LIMITED 7,120 0.70%


Index Methodology

What is stock market index and how does it construct?

A stock market index is a number that indicates the relative level of prices or value of securities in a market on a particular day compared with a base-day figure, which is usually 100 or 1000. There are many different ways of constructing an index. One of the most common methods is illustrated by the following simple example.The values of a market portfolio at the close of trading on Day 1 and Day 2 are recorded below:


Trading days Value of portfolio Index
DAY 1 (base day) Tk 20,000 1000
DAY 2 Tk 21,000 1050

We take Day 1 as the base day. The index on that day will be taken as a standard. The value assigned to the base day index is 1000 in this example. On Day 2 the value of the portfolio has changed from Tk 20,000 to Tk 21,000, a 5% increase. Therefore, the value of the index on Day 2 will change to indicate a corresponding 5% increase in market value. The computation follows the procedure below:

 

                               2's portfolio value
Day 2's index = ------------------------------------------------- * Base Day's (Day 1) index
                               Base Day's (Day 1) portfolio value

                              Tk 21,000
                        = ---------------- * 1000
                              Tk 20,000
                        = 1050

 

Day 2's index is 1050 as compared to the 1000 of day 1. The above illustration only serves as an introduction to how a particular index is constructed. The daily computation of an index is more involved especially when there are changes in market capitalization of constituent stocks, e.g., rights offers, stock dividend etc. The primary objective of constructing market indices is to measure the performance of the market. The indices provide vital information about the current and historical behavior of the market. Stock market indices differ from one to another basically in their sampling and/or weighting methods.

Sampling Method

There are some market indices that are composed of all stocks listed in a market, e.g., the American Stock Market Index and the Hong Kong Stock Exchange All-Ordinaries Index etc.
In general, an index based on a larger percentage of the total number of listed stocks will be more representative than that one based on a smaller percentage. Although an index that consists of all listed stocks can be considered as more representative, a number of stocks may have very few transactions, the quoted price of these stocks may not reflect their true market value. An index may still be highly representative even if it consists of only a relatively small percentage of the total number of stocks. Here, the sample selection process plays an important role.
Most of well-known stock market indices of the major stock markets in developed countries are still considered as highly representative since their constituent stocks comprise a high percentage of total value of the market. For example, the Hang Seng Index (Hong Kong) is composed of 33 constituent stocks comprising approximately 70% of total value. FOX index (Finland) is composed of 25 most traded shares which is correspond to roughly 80% of the total market value and ATX 50 (Australia) comprises 84% of the capitalization and 97% of the turnover of all Australian stocks.

Weighting Method

There are, in general, three different weighting methods, namely, value-weighted, equally-weighted (or un-weighted), and price-weighted.

Value-weighted method may be considered as a most appropriate method than others for both the bourses of the country (DSE & CSE) since the existing indices of the bourses have been calculating under value-weighted method. For a value-weighted index, the weight of each constituent stock is proportional to its market share in terms of capitalization. We can assume that the amount of money invested in each of the constituent stocks is proportional to its percentage of the total value of all constituent stocks. Examples include all major stock market indices of Hong Kong, London and many others.

Computation of Value Weighted Indices and Adjustments for Changes in Market Capitalization

The computation of a value-weighted index is useful to think in terms of evaluating the performance of a portfolio of securities. Some adjustments need to be made due to changes in market capitalization of the portfolio's constituent stocks. The adjustment procedures are discussed in detail below.
To make our computation simple, we need to keep the number of constituent stocks small. Let us assume that the index is composed of only three stocks: A, B and C.

Day 1 (base day)

Market Data of Constituent Stocks on Day 1


Stock Shares Outstanding Closing Price Market Value
A 20 10 200
B 5 8 40
C 10 5 50
Aggregate Market Value (AMV) = 290

The market value of each stock at closing is given by the product of the number of shares outstanding and the closing price. For stock A, for instance, it is 20 shares times Tk.10 which yields Tk.200. The aggregate market value (AMV) of all constituent stocks is the sum of the market value of each stock. The AMV of day 1 is Tk.290. Day 1 will be taken as the base day on which the index is set at 1000

Day 2

Market Data of Constituent Stocks on Day 2


Stock Shares Outstanding Closing Price Market Value
A 20 10 200
B 5 9 45
C 10 5.5 55
Aggregate Market Value (AMV) = 300

As there is no change in capitalization, no adjustment is needed on Day 2. The AMV is equal to Tk.300. The computation of the index on Day 2 follows the procedure below:

  

                          Day 2's AMV
Day 2's index = -------------------- * Day 1's index
                            Day 1's AMV

                             300
                        = ------- * 1000
                             290
                       = 1034.4828

 

It should be clear that the change in the index value shows the relative change in the aggregate market value of the constituent stocks. There is a 3.45% increase in AMV (also in index) on Day 2 relative to Day 1 (the base day).

Adjustment to Changes in Capitalization

Adjustments need to be made from time to time as a result of changes in capitalization of the constituent stocks. They are discussed in detail below:

Day 3 (Ex-Bonus)

Company Aissues 50% bonus shares. Its shares are to be traded ex-bonus at the ratio of "1 for 2", i.e., one share will be given as bonus for every 2 shares held. This issue of shares is going to change the total number of shares outstanding on Day 3. The adjustment is shown below:

 

                                                                                                   20(1+2)
New Total No. of Shares Outstanding of Company A = ------------
                                                                                                        2
                                                                                                 = 30

Market Data of Constituent Stocks on Day 3


Stock Shares Outstanding Closing Price Market Value
A 30 7 210
B 5 8 40
C 10 6 60
Aggregate Market Value (AMV) = 310

Therefore,

                             Day 3's AMV
Day 3's index = ---------------------- * Day 2's index
                             Day 2's AMV
                                310
                        = ----------- * 1034.4828
                               300

                        = 1068.9656

Note that the closing price of Company A on day 3 is Tk. 7/- determined by demand and supply factors in the market against the theoretically adjusted price (to the extent of disclosure) of Tk. 6.67 made on day 2 after closing market / on day 3 before starting market.

If the company issuing bonus share also recommends / declares cash dividend, then the cash dividend (to the extent of disclosure) should also be adjusted in the aforesaid theoretical price.

Day 4 (Ex-Rights)

Stock C has declared 40% rights share at the ratio of "2 for 5" at Tk.1.50 each including a premium of Tk. 0.5 each. The offer expires on Day 4 (i.e. ex-rights). As mentioned earlier, it is useful to treat the constituent stocks as a portfolio held by an investor. In the computation of the index on Day 4, the investor is assumed to exercise the rights. Therefore, the new number of shares outstanding for stock Cis given below:

                                                                                   10(2+5)
New Number of Shares Outstanding for Stock C = ----------
                                                                                        5
                                                                              = 14

 

Market Data of Constituent Stocks on Day 4


Stock Shares Outstanding Closing Price Market Value
A 30 6.5 195
B 5 9.2 46
C 14 4.5 63
Aggregate Market Value (AMV) = 314

Since all rights are exercised, capitalization adjustment needs to be made on day 3 after closing market / on day 4 before starting market. The number of shares outstanding increases by 4. This will cause an increase in capitalization by Tk.6 (= 4*1.50). The adjusted AMV on Day 3 after closing market / on day 4 before starting market in the index computation on Day 4 will be:
310 + 6 = 316
Therefore,

                             Day 4's AMV
Day 4's index =--------------------------------- * Day 3's index
                           Adjusted Day 3's AMV     
                              304
                        = ---------- * 1068.9656
                             316
                        = 1028.3720


                                     1028.3720 - 1068.9656
Percentage change = ------------------------------- * 100%
                                            1068.9656

                                = -3.80%

The index dropped from 1068.9656 to 1028.3720. This can be interpreted as a 3.80% decrease in AMV.

 

Day 5 (Replacement)

Stock B is replaced by stock D, which has a closing price at Tk.11.5 on Day 4 and its number of shares outstanding is 20. Market Data of Constituent Stocks on Day 5


Stock Shares Outstanding Closing Price Market Value
A 30 7 210
D 20 11 220
C 14 5 70
Aggregate Market Value (AMV) = 500

The adjustment on Day 4's AMV in computing Day 5's Index follows a procedure as if the stock replacement had taken place on Day 4. The adjusted AMV on Day 4 is given as:


Stock Shares Outstanding Closing Price Market Value
A 30 6.5 195
D 20 11.5 230
C 14 4.5 63
Aggregate Market Value (AMV) = 488

Therefore,                  Day 5's AMV
Day 5's index = --------------------------------- * Day 4's index
                            Adjusted Day 4's AMV

                          500
                       = ------ * 1028.3720
                         488

                       = 1053.6598

Day 6 (Addition)

Stock Eis added to the index as a constituent stock on Day 6. Stock E has a closing price of Tk.4 and the number of shares outstanding is 40 on Day 5.
Market Data of Constituent Stocks on Day 6

Stock Shares Outstanding Closing Price Market Value
A 30 7.2 216
C 14 4.8 67.2
D 20 12 240
E 40 4.5 180
Aggregate Market Value (AMV) = 703.2

Since the number of stocks has changed, we need to compute the adjusted AMV for Day 5 in computing Day 6's index. Day 5's adjusted AMV will be equal to the original AMV plus the market value of stock E on Day 5. This is equal to Tk.500 + 160 (4*40) = 660.

                                  Day 6's AMV
Day 6's index = ---------------------------------- * Day 5's index
                             Adjusted Day 5's AMV

                           703.2
                         = ------- * 1053.6598
                            660

                        = 1122.6266

Any new issue should not be considered in the computation of index for “x” days from the date of first trade. “x” may be a single digit parameter e.g. x = 1, 2, 3...... days. Here, in DSE and CSE, “x” is equal to 1.

Shares issued under Repeat Public Offer (RPO), conversion, amalgamation, acquisition etc. should be treated as new issue (addition) and adjusted to give effect in the index on the following day of crediting/ issuing of those shares as per the guideline of “Day 6”.

Day 7 (Deletion)

Stock C is deleted from the index's constituent stocks. The new total number of stocks is reduced to 3. Market Data of Constituent Stocks on Day 7

Stock Shares Outstanding Closing Price Market Value
A 30 7 210
D 20 12.3 246
E 40 5 200
Aggregate Market Value (AMV) = 656

The adjusted AMV on Day 6 will be a reduction by the amount of market value of stock C on Day 6. Day 6's adjusted AMV will be equal to Tk 703.2 - 67.2 = 636.

                                Day 7's AMV
Day 7's index = --------------------------------- * Day 6's index
                             Adjusted Day 6's AMV

                           656
                         = ----- * 1122.6266
                          636

                        = 1157.9293

Day 8 (Ex-Dividend)

Cash dividends of Tk .50 per share are declared for stock E and Day 8 is to be ex-dividend. Market Data of Constituent Stocks on Day 7

Stock Shares Outstanding Closing Price Market Value
A 30 7.2 216
D 20 12.3 246
E 40 4.6 184
Aggregate Market Value (AMV) = 646

No adjustment is needed, as there is no change in capitalization.

                              646
Day 8's index = ------- * 1157.9293
                              656

                         = 1140.2779

Note that the price of stock E drops. This is a normal phenomenon as a stock goes ex-dividend. Day 8’s index records a decrease as well.
Note that the closing price of Company E on day 8 is Tk. 4.6 determined by demand and supply factors in the market against the theoretically adjusted price (to the extent of corporate disclosure) of Tk. 4.50 made on day 7 after closing market / on day 8 before starting market.