THUR, JAN 02 2020-theG&BJournal- The Nigerian Stock Exchange (NSE), the premier sustainable exchange servicing Africa’s largest economy, has announced the results of its annual full year market index review for the following indices –the NSE 30, NSE Lotus Islamic, NSE Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index; and the five Sectoral Indices of The Exchange -NSE Banking, NSE Insurance, NSE Industrial, NSE Consumer Goods and NSE Oil & Gas.
The review has led to the entry and exit of major companies from several indices came into effect today Thursday, January 2, 2020 when the market opened.
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.
The Nigerian bourse began publishing the NSE 30 Index in February 2009 with index values available from January1, 2007. On July 1, 2008, the NSE 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. The Exchange in collaboration with issuers like Lotus Capital, Meristem Securities and Afrinvest have also published co-branded indices.
NSE 30 Index incoming companies are CCNN Plc, FCMB Plc and MTN Nigeria Plc whike the exiting companies are Forte Oil Plc, Oando Plc and PZ Industries Plc.
For the NSE Insurance Index, the incoming companies include Cornerstone Insurance Plc and Sunu Assurances Nigeria Plc while exiting companies are Veritas Kapital Ass. Plc and Continental Insurance Plc. In the NSE Industrial Index the incoming company is Premier Paints Plc while the exiting Notore Chemical Ind. Plc. NSE Pension Index have as incoming MTN Nigeria Plc and exiting company is Glaxo Smithkline Plc.
The NSE Lotus Islamic Index incoming companies are MTN Nigeria Plc and Forte Oil Plc while Glaxo Smithkline Plc, CAP Plc and Presco Plc are all exiting the index. In the Corporate Governance Index, only MTN Nigeria Plc is noted as incoming. Afrinvest Div Yield Index has as incoming Conoil Plc, Dangote Cement and Vitafoam while NASCON, NEM Insurance and UACNPlc are classified as exiting.
Cadbury Nigeria Plc, CAP Plc Dangote Cement Plc, ETI, May & Baker, UAC-Properties, Wapic Insurance Plc and Zenith Bank Plc in the Meristem Growth Index are classified as incoming companies while Access Bank Plc, Dangote Sugar and Flour Mills Plc are exiting the index.
In the Meristem Value Index, CCNN Plc, Conoil Plc, Custodian Insurance Plc, Forte Oil Plc, Glaxo Smithkline Plc, NAHCO Plc and NASCON are incoming companies into the group while Dangote Cement Plc, GT Bank Plc and Wapic Insurance Plc are exiting the index.
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