Key Takeaways
- • Seven banks—Al-Arafah Islami Bank, IFIC Bank, Islami Bank, Mercantile Bank, ONE Bank, The Premier Bank, and United Commercial Bank—have been removed from the Chittagong Stock Exchange (CSE) CSE50 benchmark index effective October 11, 2026, following the exchange's biannual review.
- • Seven replacement companies across diversified sectors have been inducted: BSRM Steels, Berger Paints, Dhaka Bank, Fine Foods, Heidelberg Materials, Taufika Foods and Lovello, and The Ibn Sina Pharmaceuticals, broadening sector representation within the benchmark.
- • The revised CSE50 composition represents 76.40% of total market capitalization and 72.57% of free-float market capitalization on the CSE as of June 30, 2026, with the 50 constituent stocks accounting for 53.72% of average daily turnover over the preceding six-month period.
- • The CSE50 index is reviewed biannually based on six-month performance data and serves as the official benchmark for Bangladesh's capital market, measuring 50 leading and liquid stocks across multiple sectors while excluding corporate bonds, mutual funds, and Z-category companies.
Summary
The Chittagong Stock Exchange has completed its regular biannual rebalancing of the CSE50 benchmark index, removing seven banks from the index effective October 11, 2026. The exclusions represent a significant compositional shift in Bangladesh's primary equity benchmark. The removed banks—Al-Arafah Islami Bank, IFIC Bank, Islami Bank, Mercantile Bank, ONE Bank, The Premier Bank, and United Commercial Bank—failed to meet performance and liquidity criteria during the review period ending June 30, 2026.
To maintain the index's structural integrity and diversification mandate, the CSE simultaneously inducted seven replacement entities spanning manufacturing, consumer goods, banking, and pharmaceuticals sectors. New entrants include BSRM Steels and Berger Paints from industrials, Dhaka Bank from the financial services sector, Fine Foods and Taufika Foods and Lovello from consumer staples, Heidelberg Materials from construction materials, and The Ibn Sina Pharmaceuticals from healthcare. This rebalancing reduces the banking sector's concentration within the benchmark while expanding exposure to industrial and consumer-oriented businesses.
As of June 30, 2026, the revised CSE50 constituents represent 76.40% of the CSE's total market capitalization and 72.57% of free-float market capitalization. The 50 stocks accounted for 53.72% of average daily turnover on the exchange during the six months ending June 30, 2026, underscoring their continued liquidity and market prominence. The CSE50 functions as the official benchmark for Bangladesh's capital market performance, designed to reflect broad-based market movements while filtering out illiquid securities, corporate bonds, mutual funds, and Z-category (suspended or delisted) companies. These composition adjustments ensure the index maintains relevance as an accurate barometer of market-wide trends and institutional investor performance benchmarking.
To maintain the index's structural integrity and diversification mandate, the CSE simultaneously inducted seven replacement entities spanning manufacturing, consumer goods, banking, and pharmaceuticals sectors. New entrants include BSRM Steels and Berger Paints from industrials, Dhaka Bank from the financial services sector, Fine Foods and Taufika Foods and Lovello from consumer staples, Heidelberg Materials from construction materials, and The Ibn Sina Pharmaceuticals from healthcare. This rebalancing reduces the banking sector's concentration within the benchmark while expanding exposure to industrial and consumer-oriented businesses.
As of June 30, 2026, the revised CSE50 constituents represent 76.40% of the CSE's total market capitalization and 72.57% of free-float market capitalization. The 50 stocks accounted for 53.72% of average daily turnover on the exchange during the six months ending June 30, 2026, underscoring their continued liquidity and market prominence. The CSE50 functions as the official benchmark for Bangladesh's capital market performance, designed to reflect broad-based market movements while filtering out illiquid securities, corporate bonds, mutual funds, and Z-category (suspended or delisted) companies. These composition adjustments ensure the index maintains relevance as an accurate barometer of market-wide trends and institutional investor performance benchmarking.
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