Oando Plc has been included in crucial index of Nigeria’s 30 largest and most active companies, underlining the growing importance of the energy group as one of the most influential companies denoting the direction of the Nigerian economy.
The Nigerian Exchange (NGX) yesterday published the results of its full-year market index review for the stock market indices. The major highlight of the review, which is done twice a year, was the inclusion of Oando as part of the NGX 30 Index.
The NGX 30 Index is a weighted benchmark that tracks pricing and activity trends among Nigeria’s 30 largest quoted companies. It has considerable influence over the overall market position and the national economy as the 30 biggest companies account for more than two-thirds of Nigeria’s stock market capitalisation.
The NGX noted that the stock market indices were developed to allow investors to follow market movements and properly managed investment portfolios.
Designed using the market capitalisation methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.
Market analysts said the upscale of Oando to the NGX 30 Index underscored sustained investors’ appetite for the energy group, which led to considerable improvement in its market value and consistency of trading.
The NGX 30 Index has a primary place among the group and sectoral indices. The NGX 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 capitalised and liquid companies in the insurance and consumer goods sectors; the top 10 most capitalised and liquid companies in the banking and industrial goods sector; and the top seven most capitalised and liquid companies in the oil and gas sector.
In July 2012, the NGX launched the NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices are in conformity with Shari’ah investment principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened.
The companies that appear on the Islamic index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.