The MSCI Index has just added Forte Oil and ETI (Ecobank Transatlantic) to its list of MSCI Nigeria Indexes. It rebalances its indexes in May and November every year. The index is basically for Frontier Markets and include indexes from countries like UAE, Morocco, Bahrain, Qatar, Tunisia, Nigeria etc.
The index has returned -8.83% YTD and has an annualized return of 14.69% since 2002. Last year it returned 29.17%. As at April 2014 it had a dividend yield of 4.72% and a P.E ratio of 10.99. The index is hotly followed by most mutual funds and trading houses. Typically stocks newly included in this index witness an upsurge in value as investors scramble to also include them in their portfolio. This is because most investors want to mirror their index in their portfolio.
So for speculators, watch out for share prices of Forte Oil and ETI. The top ten Nigerian stocks included in the index are;
- NIGERIAN BREWERIES
- GUARANTY TRUST BANK
- ZENITH BANK
- NESTLE FOODS NIGERIA
- FBN HOLDINGS
- DANGOTE CEMENT
- GUINNESS NIGERIA
- SEPLAT PETRO DEV CO
- LAFARGE CEMENT WAPCO
- UNITED BANK FOR AFRICA
I believe it’s time to wait to sell. #My opinion.
Why is that?