4 Banks, Cadbury join others in NSE-30 Index as Julius Berger quits

Diamond Bank, Fidelity Bank, Sterling Bank, FCMB Group and Cadbury are the five equities that will join other companies in the NSE-30 index from July 1 2017 in an expected review of sectoral indices by The Nigerian Stock Exchange (NSE).

Five equities: Conoil Plc, UACN Plc, Julius Berger Nig. Plc, 7-Up Bottling Co. Plc, and Okomu Oil Palm Plc will exit the index in the review exercise conducted twice a year by the Exchange.

The NSE also announced the review of six other sectoral indices of the bourse. The NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and the NSE Lotus Islamic Indices will also be reviewed in the exercise.

INCOMING AND EXITING COMPANIES IN VARIOUS INDICES
INDEX	LIKELY COMING	LIKELY EXITING
​     NSE 30 Index	​Fidelity Bank Plc	​Conoil Plc
	Sterling Bank Plc	UACN Plc
	Diamond Bank Plc	Julius Berger Nig. Plc
	Cadbury Nigeria Plc	7-Up Bottling Co. Plc
	FCMB Group Plc	The Okomu Oil Palm Plc
​   NSE Lotus Islamic Index	​Total Nigeria Plc	​Forte Oil Plc
	Nigerian Aviation Handling Co. Plc	7&up Bottling Co. Plc
​   NSE Consumer Goods Index	​Nig. Enamelware Plc	​Vitafoam Nigeria Plc
	Northern Nigeria Flour Mills	Honeywell Flour Mills Plc
	Union Dicon Salt Co. Plc	Dangote Flour Mills Plc
​ NSE Banking Index	​Skye Bank Plc	​Wema Bank Plc
	Unity Bank Bank Plc	Diamond Bank Plc
​     NSE Insurance Index	​Linkage Assurance Plc	​Sovereign Trust Insurance Plc
	Regency Alliance Insurance Plc	Unity Kapital Assurance Plc
	Consolidated Hallmark Insurance Plc	Mutual Alliance Insurance Plc
	Universal Insurance Co. Plc	Staco Insurance Plc
	Equity Assurance Plc	Prestige Assurance Plc
​ NSE Oil & Gas Index	​Japaul Oil & Maritime Services Plc	​MRS Oil Nigeria Plc
	Eterna Plc	Conoil Plc
​ NSE Industrial Index	​Grief Nig. Plc	​Portland Paints & Products Nig. Plc
	First Aluminium Nige Plc	Paints & Coatings Plc
	African Paints Plc	​DN Meyer Plc​

                Source: NSE

The NSE-30 Index is a modified market capitalization index with the numbers of included stocks fixed at 30. The Stocks are selected based on their market capitalization 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 have traded for at least 70 per cent of the number of times the market opened for business,” The NSE said in a review notice released on its website on June 21 2017.

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 deve​loped four sectoral indices and developed the NSE Pension Index in 2013, 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 15 most capitalized and liquid companies in the Insurance and Consumer Goods sectors, top 10 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 indices, which were developed using the market capitalization methodology, are rebalanced on a biannual basis -on the first business day in January and in July.