A musical chair of sorts has taken place in the Nigerian Exchange Group (NGX) half year review of its indices which has seen the exits and entry of known listed companies.
Last week the bourse had announced it was rebranding its indices in line with its drive to standardise and ensure consistent expression of the brand across touchpoints. It has now followed that with the announcement of the conclusion of its review exercise for the half year 2021 which has led to some companies entering and others exiting some of the indices
The NGX said in disclosure accessed by business a.m. 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 rebalanced on a semi-annual basis on the first business day in January and in July. Also, the exchange had said that in collaborative effort with other capital market players it will publish co-branded indices including Lotus Capital Limited, Meristem Securities Limited and Afrinvest Securities Limited.
Following the review of the indices United Capital is now listed on the NGX 30 index after the delisting of 11 Plc (formerly Mobil Plc) from the local bourse in 2021 as well as from the oil & gas index, and pension index which welcomes Vitafoam Nigeria.
Also, the NGX Lotus Islamic index will welcome Presco Plc and Nigerian Aviation Handling Company Plc following the exit of Chemical and Allied paints and Cadbury Nigeria Plc.
On the Afrinvest Bank Value Index, Fidelity Bank Plc and FCMB Plc will be listed, while United Bank for Africa exits the index. Afrinvest Div Yield Index will welcome Dangote Cement Plc as the likes of Africa Prudential Plc and Vitafoam Plc exit the index.
Meristem Growth Index will allow Aiico Insurance Plc, Jaiz Bank Plc, Presco Plc and PZ Cussons Nigeria Plc as companies as Africa Prudential Plc, Ardova Plc, Dangote Cement Plc and Glaxo Smithkline Consumer Nig. Plc exit themselves from the index. Meristem Value IndexArdova Plc Custodian Investment Plc Unilever Nigeria PlcConoil Plc as Presco Plc, Wema Bank Plc, and Nascon Allied Industries Plc also exit the index.
However, the exchange stated that the compiler of the indices maintains the right to modify the circulated selection above in connection with any mergers, takeovers, suspension or resumption of trading or any other company structure changes during the period before the effective date of the annual review.
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 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.
