DSE Index Weighting Analysis

How the DSEX Index is Calculated

The DSE Broad Index (DSEX) is a Free-Float Market Capitalization Weighted Index. This means that companies with larger market values (specifically the shares available for public trading) have a much greater influence on the index points than smaller companies.

The Power of Heavyweights

In the Dhaka Stock Exchange, the top 10 companies often account for nearly 50% of the total index weighting. This leads to a phenomenon where the overall index can stay "Green" (positive) even if hundreds of smaller stocks are "Red" (negative).

• Grameenphone (GP): Historically the largest heavyweight. A 2% move in GP can often change the DSEX by 5-10 points alone.
• Walton Hi-Tech: Another massive player that can significantly skew index performance.
• BATBC: The British American Tobacco company is a staple in the index weighting, often used as a benchmark for market health.

Market Concentration Risk

High concentration in a few stocks means the DSEX index is not always a perfect reflection of the "Average" investor's experience. This is why many professional traders in Bangladesh look at the Market Breadth (the number of advancing vs. declining stocks) rather than just the index points.

How to use this tool?

Our DSE Index Weighting tool allows you to input the percentage change of top heavyweights to see their combined impact on the DSEX. If the index is rising purely because of 1 or 2 stocks while the rest of the market is falling, it's a sign of a "Non-Inclusive" or manipulated rally.