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UACN, Ashaka Cement join indices as NSE review indicators

By on July 1, 2014

The Nigerian Stock Exchange (NSE) last Friday announced the results of the biannual review for the NSE 30, NSE Lotus Islamic Index (NSE LII) and the five sectoral indices of the exchange.

The sectoral indices are the NSE Banking, NSE Consumer Goods, NSE Oil & Gas, NSE Industrial, and NSE Insurance.

However, while there were changes in the NSE 30 and Lotus Islamic Indices, only three of the sectoral indices witnessed changes.

In the NSE 30 for instance, Skye Bank Plc exited while Ashaka Cement Plc  entered. In the NSE Lotus Islamic Index, UAC of Nigeria Plc came in while Nigerian Aviation Handling Company Plc exited.

Champion Breweries Plc joined the NSE Consumer Index, while DN Tyre & Rubber Plc was removed.

Sterling Bank was added to the  NSE Banking Index, just as Wema Bank Plc was removed.

In the same vein, Staco Insurance Plc and Unity Kapital Assurance Plc were added to the NSE Insurance Index, while Consolidated Hallmark Insurance Plc and Prestige Assurance Plc were removed. The new composition of these indices review will be effective tomorrow.

According to the Index Committee, The NSE-30 and NSE Industrial Indices are modified market capitalisation index with the numbers of included stocks fixed at 30 and 10 respectively. The numbers of included stocks in the NSE-Consumer Goods, Banking, Insurance and Oil/Gas Indices are 15, 10, 15 and seven respectively.

The committee explained that the Stocks are selected based on their market capitalisation from the most liquid sectors. The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must be traded for at least 70 per cent of the number of times the market opened for business.

The NSE  began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007 while on July 1, 2008, the NSE developed four sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.

 

[This Day]