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NSE reviews composition of market indices

By on June 17, 2016

The Nigerian Stock Exchange has announced the expected review of the NSE 30, and the six sectoral indices of the Exchange, which are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and the NSE Lotus Islamic Indices.

The composition of these indices after the review will be effective on July 1, 2016, the NSE said in a statement on Wednesday. “With the review, we will witness the entry/re-entry as well as exit of some major companies,” it explained.

For NSE 30 Index, the likely new entrants are UACN Plc, Presco Plc, Cadbury Nigeria Plc, FCMB Group Plc and Transcorp Hotels Plc; while Glaxo Smithkline Consumer Plc, Sterling Bank Plc, Fidelity Bank Plc, Diamond Bank Plc and Transcorp Plc might leave the category.

For NSE Consumer Goods Index, the likely income firms are Northern Nigeria Flour Mills Plc, DN Tyre & Rubber Plc, Union Dicon Plc and Premier Breweries Plc. But Vitafoam Nigeria Plc, Tiger Branded Consumer Goods Plc, Honeywell Flour Mills Plc and NASCON Allied Industries Plc are likely going to exit the group.

For the NSE Banking Index, Skye Bank Plc and Unity Bank Plc are expected to come on board, while Wema and Fidelity Bank were penciled to leave the category.

The NSE Insurance Index is expected to take in Consolidated Hallmark Insurance Plc, Law Union & Rock Insurance Plc, International Energy Insurance Plc, UNIC Insurance Plc and Sovereign Trust Insurance Plc. On the other hand, Linkage Assurance Plc, Cornerstone Insurance Plc, Standard Alliance insurance Plc, Universal insurance Company Plc and Equity Assurance Plc are expected to exit the group.

Greif Nigeria Plc and DN Meyer Plc are likely to be absorbed into the NSE Industrial Index, while Avon Crowncaps & Containers Plc, Paints & Coatings Manufacturers Plc would exit.

Japaul Oil & Maritime Services Plc and Eterna Plc are to be admitted into the NSE Oil & Gas Index, while MRS Oil Nigeria Plc and Conoil Plc would exit.

For NSE Lotus Islamic Index, Total Nigeria Plc and Forte Oil Plc are to be admitted, while Lafarge Africa Plc and Chemical & Allied Products Plc would leave the group.

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 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 capitalised and liquid companies in the insurance and consumer goods sectors, top ten most capitalised and liquid companies in the banking and industrial goods sector and the top seven most capitalised and liquid companies in the oil and gas sector.

In July 2012, the Nigerian bourse launched the NSE Lotus Islamic index which consists 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 ethical and noninterest investment space widened.

The companies that appear on the Islamic Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognised Shari’ah Advisory Board comprising of renowned Islamic scholars.

 

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