The Nigerian Exchange Limited (NGX) has listed Wema Bank Plc on the NGX 30 Index following the outcome of the 2022 market index review.
This was disclosed by the NGX in a statement detailing the results of its full-year market index reviews.
Note that the NGX 30 Index tracks the top 30 companies in terms of market capitalization and the total value of equities listed on the NGX.
The 2022 review led to the entry and exit of some companies from several indices that took effect at the opening of the market on Tuesday, January 3, 2023.
Review methodology: The indices, according to NGX, were developed to allow investors to track market movements and properly manage 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.
Access Holdings, Sterling BANK Plc MRS Oil Plc, and Airtel Africa Plc are among the other companies on the NGX-30.
The bank’s reaction: Reacting to the development, Wema Bank said this is indicative of its resilience and growth.
- “This demonstrates the bank’s resilience and strong profitability growth over the years with our share price capped at N3.58 as of today. As a result, the bank is an appealing investment for the investment community,” the bank noted.
The review snapshot: 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 of The Exchange are – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods, and NGX Oil & Gas.
- They comprise the top fifteen most capitalized and liquid companies in the Insurance and Consumer Goods sectors; the top ten most capitalized and liquid companies in the Banking and Industrial Goods sector; and the top seven most capitalized and liquid companies in the Oil & Gas sector.
- In July 2012, the Nigerian bourse launched The NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices conform with Shari’ah Investment Principles. The aim was to increase the breadth of the market and create 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 renowned Islamic scholars.