By Dipo Olowookere
Nigerian Exchange (NGX) Limited has reviewed its market indices for half-year, with some companies exiting and joining a few of the newly rebranded key market indicators.
Analysis of the results of the review showed that United Capital was included in the NGX 30 index, while 11 Plc was removed following its voluntary delisting from the exchange.
In the NGX oil & gas index, 11 Plc was also removed as well as in the NGX pension index, which had Vitafoam Nigeria joining the fold.
As for the NGX Lotus Islamic index, Presco and Nigerian Aviation Handling Company (NAHCO) were added, while Chemical and Allied Paints and Cadbury Nigeria exited the group.
Business Post reports that the Afrinvest Bank Value index saw the inclusion of Fidelity Bank and FCMB and the exit of UBA, while the Afrinvest dividend yield index welcomed Dangote Cement and said goodbye to Africa Prudential.
The Meristem growth index was very busy as AIICO, Jaiz Bank, Presco and PZ Cussons joined, with Africa Prudential, Ardova, Dangote Cement and GlaxoSmithKline leaving.
Ardova, Custodian Investment and Unilever Nigeria were added to the Meristem value index, while Conoil, Presco, Wema Bank and NASCON Allied Industries were removed.
The quintet of NGX consumer goods index, NGX banking index, NGX insurance index, NGX industrial goods index and corporate governance index recorded no entry or exit.
The exchange developed these indices to allow investors to follow market movements and properly manage investment portfolios. They were created using the market capitalisation methodology and are rebalanced on a semi-annual basis on the first business day in January and in July.
It would be recalled that NGX recently announced the rebranding of its indices in line with NGX’s drive to standardise and ensure consistent expression of the brand across touchpoints.
All indices were rebranded with a pre-fix, NGX – formerly NSE – to promote brand awareness and recognition. The exercise did not, however, affect the computation methodology of the indices.
The Nigerian bourse began publishing the NGX 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NGX developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.
The sectoral indices comprise the top 15 most capitalized and liquid companies in the Insurance and consumer goods sectors; the top ten most capitalised and liquid companies in the banking and industrial goods sector; and the top seven most capitalized and liquid companies in the oil & gas sector.
Furthermore, NGX has collaborated with other capital market players to publish co-branded indices including Lotus Capital Limited, Meristem Securities Limited and Afrinvest Securities Limited.
