NGX Reviews Market Indices Amid Entries, Exits of Companies
The Nigerian Exchange Ltd. (NGX) on Thursday announced the results of its full-year market index review for its indices. The Exchange also announced the entries and exits of some companies in the various indices.
NGX, in a report, listed the affected indices as, NGX 30; NGX Lotus Islamic; NGX Pension; NGX Pension Broad Index; Corporate Governance Index; Afrinvest Bank Value Index; Afrinvest Dividend Yield Index.
Others are: 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 and Gas.
The Exchange said the review had led to the entries and exits of some companies from several indices which took effect at the opening of the market on Thursday.
NGX said, on the NGX 30 Index, Conoil Plc, International Breweries Plc, Oando Plc and Transcorp Power Plc, came in, while Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc and Flour Mills Nig. Plc exited.
On NGX Consumer Goods Index, Golden Guinea Breweries Plc entered, and Flour Mills Nig. Plc exited, while the NGX Banking Index recorded the entry of Wema Bank Plc and exit of Sterling Holding Company Plc.
Also, Guinea Insurance Plc, International Energy Insurance Plc, entered the NGX Insurance Index, while LASACO Assurance Plc and Mutual Benefits Assurance Plc exited.
On the NGX Oil and Gas Index, Aradel Holdings Plc, MRS Plc and Oando Plc, came in, while Japaul Oil and Services exited. The NGX Pension Index also witnessed the entries of Aradel Holdings Plc, Transcorp Power Plc and exits of Flour Mills Nig. Plc and Cadbury Nigeria Plc.
On the NGX Lotus Islamic Index, Aradel Holdings entered, and Dangote Sugar Refinery Plc exited, while NGX Pension Broad Index reported the entry of Aradel Holdings and exit of Flour Mills Nig. Plc.
Afrinvest Div Yield Index recorded the entry of Red Star Express Plc, while FCMB Group Plc and Dangote Cement Plc exited. FCMB Group Plc also entered the Meristem Growth Index, while Access Bank Plc and Zenith Bank Plc exited.
Meristem Value Index also reported the entries of Access Bank Plc, Dangote Sugar Refinery Plc, Zenith Bank Plc, and exits of AIICO Insurance Plc, Nigerian Breweries Plc, FCMB Group Plc and Flour Mills Nig. Plc.
However, the NGX Industrial Index, Corporate Governance Index, and Afrinvest Bank Value Index, recorded no entry or exit of any company. Designed using the market capitalisation methodology, NGX explained that the indices are rebalanced semi-annually on the first business day in January and July respectively.
The Exchange said it had also launched the NGX Equity-Based Commodity Index. “This is a broad market commodity index that captures and tracks the collective movements of companies with primary operations in energy, agriculture, mining, metals, and natural resources.”
It added that through the Equity-Based Commodity Index, investors are provided with potential exposure to the essential raw materials and natural resources that drive global economic activity.
According to the NGX, the starting constituents of the index are Geregu Power Plc, Multiverse Mining and Exploration Plc, Okomu Oil Palm Plc, Presco Plc, Seplat Energy Plc, Transcorp Power Plc, and Aradel Holdings Plc.
NGX stated that the index’s starting value is set at 1,000. Commenting, Mr Jude Chiemeka, the Chief Executive Officer (CEO), NGX, reiterated that the Exchange continues to blaze the path to becoming Africa’s foremost Securities Exchange.
Chiemeka said this would be achieved with innovation and product developments that deepen the market and boost liquidity, thus connecting Nigeria, Africa, and the world.
Similarly, Mr Abimbola Babalola , Head, Trading and Products, NGX, noted that the indices are developed, managed, and rebalanced semi-annually.
According to him, this is to allow investors track market movements efficiently and manage their investment portfolios properly. #NGX Reviews Market Indices Amid Entries, Exits of Companies 2025 Budget: N13trn Deficit to be Financed Through Borrowing – Edun
