NGX rolls out index to focus on equity-based commodity stocks
Onome Amuge
The Nigerian Exchange Limited (NGX) has introduced the Equity-based Commodity Index, a benchmark index that tracks the performance of companies operating in key sectors of the Nigerian economy, such as energy, agriculture, mining, metals, and natural resources
The launch of the NGX Equity-Based Commodity Index comprises an initial list of prominent constituent companies that drive the economic activity in the energy, agriculture, mining, metals, and natural resources sectors. These include Geregu Power Plc, Multiverse Mining and Exploration Plc, Okomu Oil Palm Plc, Presco Plc, Seplat Energy Plc, Transcorp Power Plc, and Aradel Holdings Plc.
The NGX’s annual review, as documented in the Full-Year Review of Market Indices also updated changes to its existing indices. The index review process, based on market capitalisation methodology, involved the addition and removal of companies from various indices, effective January 2, 2025.
In the flagship NGX 30 Index, which serves as a barometer for the largest and most liquid companies traded on the NGX, four new constituents, Conoil, International Breweries, Oando, and Transcorp Power, were included as part of the index review. At the same time, four outgoing companies, Guinness Nigeria, Sterling Holding Company, Total Nigeria, and Flour Mills Nigeria, were removed from the index.
In the NGX Consumer Goods Index, Golden Guinea Breweries was the only new entrant, joining the index following the January 2025 review. At the same time, Flour Mills Nigeria’s exit from the index was a result of changes in its market capitalisation and sector categorisation.
The NGX Banking Index also underwent a rebalancing exercise, welcoming Wema Bank into the index, while Sterling Holding Company’s departure from the index reflects the changes in its market capitalisation and liquidity.
The NGX Insurance Index saw Guinea Insurance and International Energy Insurance join the index, while LASACO Assurance and Mutual Benefits Assurance left.
The NGX Oil & Gas Index experienced the addition of Aradel Holdings, MRS Oil Nigeria, and Oando, while Japaul Oil and Services exited.
In the NGX Pension Index, the annual review resulted in the inclusion of Aradel Holdings and Transcorp Power, while Flour Mills Nigeria and Cadbury Nigeria were removed.
Meanwhile, in the NGX Lotus Islamic Index, Aradel Holdings was added as a new constituent, replacing Dangote Sugar Refinery.
The NGX Pension Broad Index also saw Aradel Holdings as a new entrant, which reflects its suitability for this particular index.
Jude Chiemeka, The NGX CEO, reaffirmed the Exchange’s dedication to becoming a leading player in Africa’s securities market through continuous innovation, product development, and market deepening initiatives.
Chiemeka noted that with a clear vision of connecting Nigeria, Africa, and the world, the NGX aims to increase market liquidity and provide efficient access to investment opportunities for a wider range of participants. This strategic approach, he stated, not only positions NGX as a dominant player in the African market but also sets a benchmark for other securities exchanges to follow.