Stock Exchange reviews market indices

The Nigerian Exchange (NGX) Limited has reviewed its sectoral market indices in order to reflect current trends at the stock market.

The half-year review led to the entry and exit of some companies from several indices effective July 1, 2021.

The Exchange explained that the indices were developed to allow investors to follow market movements and properly manage investment portfolios.

Designed using the market capitalisation methodology, the indices are rebalanced on a semi-yearly on the first business day in January and in July.

The reviewed indices included NGX 30, NGX Lotus Islamic, NGX Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index; and the five Sectoral Indices of the Exchange, NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods and NGX Oil & Gas.

Following the review of the indices, United Capital is listed on the NGX 30 index after the delisting of 11 Plc (formerly Mobil Plc) from the local bourse in 2021 as well as from the Oil & Gas index, and Pension index which welcomes Vitafoam Nigeria.

The NGX Lotus Islamic index welcomed Presco and Nigerian Aviation Handling Company (NAHCO) following the exit of Chemical and Allied paints and Cadbury Nigeria Plc. On the Afrinvest Bank Value Index, Fidelity Bank Plc and FCMB Plc will be listed, while United Bank for Africa (UBA) exits the index. Afrinvest Div Yield Index has Dangote Cement Plc on it as the likes of Africa Prudential and Vitafoam exit the index.

Meristem Growth Index admitted AIICO Insurance, Jaiz Bank, Presco and PZ Cussons Nigeria, while Africa Prudential, Ardova, Dangote Cement and Glaxo Smithkline Consumer Nigeria exited from the index.

Meristem Value Index got Ardova, Custodian Investment, Unilever Nigeria and Conoil on index, while Presco, Wema Bank and Nascon Allied Industries exited the index.

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 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 […]

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