The Nigerian Stock Exchange, NSE, has announced the review of the NSE-30 and the seven sectoral indices effective January 1, 2018.
Mr Olumide Orojimi, Head, Corporate Communications NSE, said the composition of these indices would be announced in January, after the completion of the year-end review and index rebalancing exercise.
Orojimi said the exercise will see the entry of some major companies and the exit of others from the various indices.
He said the seven indices were
- NSE Consumer Goods
- NSE Banking
- NSE Insurance
- NSE Industrial
- NSE Oil and Gas
- NSE Pension
- NSE Lotus Islamic Indices.
Orojimi said the indices, which were developed using the market capitalisation methodology, were rebalanced on a bi-annual basis, on the first business day in January and in July.
He said under the consumer goods index, Northern Nigeria Flour Mills had been granted entry into the indices, while Seven Up was on the exiting side.
Orojimi added that Equity Assurance and Mutual Benefit Assurance was considered for entry into the NSE insurance index, while Regency Alliance and Universal Insurance would exit the index.
He said: “Oando is exiting on the NSE Oil and Gas indices, making way for Eterna Oil to enter into the index.”
For the NSE Pension index, Honeywell flourmills and International Breweries would be given access to the index, while Oando and Seven-Up are leaving the index,” he said.
Orojimi said that the stocks were also selected based on market capitalisation and liquidity, noting that liquidity was based on the number of days the stock was traded during the preceding two quarters.
“To be included in the index, the stock must have traded for at least 70 per cent of the number of trading days in the preceding two quarters,” he said.
The Insurance and Consumer Goods sector index is comprised of the 15 most capitalised and liquid companies; the Banking and Industrial Goods sector index comprised of 10 most capitalised and liquid companies.
While the Oil and Gas sector index, is comprised the seven most capitalised and liquid companies.
The Nigerian Stock Exchange services the largest economy in Africa and is championing the development of Africa’s financial markets.
The NSE, a registered company limited by guarantee, was founded in 1960 and it is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (SEC) of Nigeria.
The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services and more.
The Exchange began publishing the NSE 30 Index in February 2009, with index values available from January 1, 2007.
The Exchange on July 1, 2008, developed four sectoral indices and one index in 2013, with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.