NSE Discloses Results of Market Indices Review. The Nigerian Stock Exchange (NSE) www.nse.com.ng, the premier sustainable exchange servicing Africa’s largest economy, has announced the results of its annual full year market index review.
NSE stated that the indices include the NSE 30, NSE Lotus Islamic, NSE Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, and Meristem Value Index.
In addition, the review also covered the five sectoral Indices of the Exchange – NSE Banking, NSE Insurance, NSE Industrial, NSE Consumer Goods and NSE Oil & Gas.
On the NSE 30, in addition to Forte Oil, Oando and PZ industries, Cement Company of Northern Nigeria, FCMB and MTN Nigeria has joined the index.
MTN Nigeria has been included in NSE Pension index, NSE Lotus Islamic Index and Corporate Governance Index.
The review has led to the entry and exit of major companies from several indices which took effect when the market opens on Wednesday, January 2, 2020.
The Exchange stated in a release that the indices were developed to allow investors to follow market movements and properly manage investment portfolios.
“Designed using the market capitalization methodology, the indices are re-balanced on a semiannual basis on the first business day in January and in July”, the Exchange noted.
The Nigerian bourse began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007.
Then, on July 1, 2008, the NSE developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.
It stated that the sectoral indices comprise the top fifteen most capitalized and liquid companies in the Insurance and Consumer Goods sectors.
Also, 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.
The Exchange in collaboration with issuers like Lotus Capital, Meristem Securities and Afrinvest have also published co-branded indices.
Written by: Julius Alagbe
