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NSE Reviews Indices In Bi-Annual Exercise

By on December 27, 2012

The management of the Nigerian Stock Exchange has almost wrapped up its bi-annual review of its indices.

The NSE reviews its indices every June and December. It has signaled that changes effected from its latest review will go into effect by January 2nd, 2013.

Market participants can expect the following changes:

1. Index Committee of the NSE has recommended that the number of stocks comprising the NSE Consumer Goods Index and the Insurance Index be increased from 10 stocks to 15 each.

2. The NSE 30 Index and the NSE Banking Index will retain their 30 stocks and 10 stocks respectively to permit portfolio diversification.

The statement said, “The breakdown of the likely composition of the indices shows that the NSE 30 Index may have GlaxoSmithkline Consumer Plc; Union Bank of Nigeria Plc; International Breweries Plc; Julius Berger Nigeria Plc; 7-UP Bottling Company Plc and Sterling Bank Plc as likely incoming stocks.

“However, Law Union & Rock Insurance Plc; Transnational Corporation of Nigeria Plc; National Salt Company of Nigeria Plc; Oando Plc; Dangote Flour Mills Plc and Mobil Oil Nigeria Plc are listed as likely exiting stocks.”

Under the NSE Consumer Goods Index, International Breweries Plc; National salt; Honeywell Flour Mills Plc; Vitafoam Plc; UTC Plc; Multi-Trex Integrated Foods Plc and Northern Nigeria Flour Mills Plc have been listed as incoming stocks, while 7-Up Bottling Plc; Cadbury Nigeria Plc; Dangote Flour Mills; Unilever Nigeria; PZ Cussons Nigeria Plc; Dangote Sugar Refinery Plc and Flour Mills of Nigeria Plc are listed as likely exiting.

The NSE Banking Index has Union Bank; Diamond Bank; Sterling Bank Plc; Unity Bank Plc and Wema Bank Plc as likely incoming while FBNH; Stanbic Holdco; Fidelity Bank Plc; First City Monument Bank Plc and Skye Bank Plc are listed as likely exiting.

In the Insurance Index, the Niger Insurance Plc; Cornerstone Insurance Plc; Standard Alliance Ins. Plc; Lasaco Assurance Plc; Sovereign Trust Insurance Plc; Linkage Assurance Plc and Prestige Assurance Plc are listed as likely incoming stocks; while Unity Kapital Assurance Plc; Mutual Benefits Assurance Plc; Goldlink Insurance Plc; Aiico Insurance Plc; Wapic Insurance Plc; Continental Reinsurance Plc and Mutual Benefits Assurance Plc are listed as likely exiting stocks.