--- title: "DSEX: Methodology" description: "DSEX is maintained by Dhaka Stock Exchange and covers broad Bangladeshi equity benchmark. How it selects and weights its constituents, and what it measures." canonical: https://www.getswoopr.com/stocks/indexes/dsex/ source: "Swoopr Investment: https://www.getswoopr.com" --- # DSEX: What It Measures and How It Is Built ## Direct Answer > The DSEX is a rule-based measurement of broad Bangladeshi equity benchmark, maintained by Dhaka Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The DSEX covers broad Bangladeshi equity benchmark, within the Bangladesh market. Dhaka Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target. ## How constituents are weighted Each stock's weight is set by its float adjusted market capitalisation. The index took a base value of 2951.91 on 17 January 2008, equal to the old DSE General Index on that date. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion Float adjusted market capitalisation above 100 million BDT and a six month average daily value traded of at least 1 million BDT. No profitability test is required. Mutual funds, debentures and bonds are excluded. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## How long a listing must exist first A stock must trade on at least half of normal trading days in each of the three months before the rebalancing reference date. A seasoning rule is why a large new listing does not appear in an index the week it starts trading. It is a deliberate lag, and it means an index can under-represent a fast-growing part of the market for months at a time. ## When the membership is revised Rebalanced annually. A current constituent below 100 million BDT of market capitalisation stays if it is at least 70 million BDT, and one whose daily value traded is below 1 million BDT stays if it is at least 0.7 million BDT, provided other tests are met. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people Unlike the DS30 there is no profit requirement and no sector diversification rule, so loss making companies can be members. Linking the base to the old General Index carries the history back to 2001. ## References - [Dhaka Stock Exchange: Dhaka Stock Exchange, DSE Indices as per the DSE Bangladesh Index Methodology (DSEX and DS30)](https://www.dse.com.bd/assets/pdf/DSEX_DS30.pdf), as published 2022. Every rule described on this page is taken from this document. ## Current DSEX constituents Dhaka Stock Exchange publishes and licenses the DSEX constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Dhaka Stock Exchange: official DSEX page](https://old.dsebd.org/assets/pdf/DSEX_DS30.pdf) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the DSEX? Dhaka Stock Exchange maintains the DSEX and publishes the methodology document that defines its eligibility and weighting rules. ### What does the DSEX measure? It measures broad Bangladeshi equity benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current DSEX constituents? Dhaka Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.