NSE reviews composition of market indices


Nigerian Stock Exchange, Lagos

30 December 2015, Lagos – The Nigerian Stock Exchange (NSE) has concluded a review of its indices with changes in three of the indices, while others remained unchanged.   The three indices that witnessed changes are the NSE 30 Index,  NSE Insurance Index and NSE Pension Index.

For instance in the NSE 30 Index, Fidelity Bank Plc, Total Nigeria Plc and  Glaxo Smithkline Consumer  Nigeria Plc are coming in, while Cadbury Nigeria Plc  FCMB Group Plc  and  UACN  of Nigeria Plc  are exiting.
The NSE Insurance Index will witness the coming in of  Law Union & Rock Insurance Plc and  STACO Assurance Plc, while  Sovereign Insurance Plc  and  Prestige Assurance Plc  will be going out.

In the NSE Pension Index incoming securities are: Cadbury Nigeria Plc, Glaxo Smithkline Consumer Plc,   Julius Berger Nigeria Plc,  Seplat Petroleum Development Company Plc and  Beta Glass Company Plc.
Conversely, stocks exiting include: Wema Bank Plc, Union Bank of Nigeria Plc, Honeywell Flour Mills Plc,  UACN Property Development Company Plc and  Ecobank Transnational Incorporated.

According to the NSE, the composition of these indices will be effective on January 1, 2016.

The Nigerian bourse began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NSE developed four sectorial indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The sectoral indices comprise the top 15 most capitalised and liquid companies in the Insurance and Consumer Goods sectors, top 10 most capitalised 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 NSE Lotus Islamic index (NSE LII) which consist of companies whose business practices are in conformity with Shari’ah investment principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative noninterest investment space widened.

The NSE launched the Pension Index on July 1, 2015 to serve as performance benchmark for pension asset managers, non-pension asset managers and investors. Similarly, the Nigerian bourse launched The Premium Board Index, an equity index designed to provide a benchmark to capture the performance of companies listed on the Premium Board in August 2015.

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