• Thursday, May 23, 2024
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BusinessDay

NSE identifies industrial goods sub-sector challenges amid prospects for 100 firms

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 The Nigerian Stock Exchange (NSE)says it is currently prospecting 100 companies in the Industrial Goods sub-sector. Oscar Onyema, CEO, NSE, said at the CEO sectoral dinner for industrial goods that 27 companies listed in the Industrial Goods Sector contributes 28 percent of total market capitalisation.

As the Exchange intensifies efforts to bring more firms on board, its investigations revealed major issues affecting the industrial sector, which include infrastructure, influx of sub-standard goods, unfavourable import tariff regime, proliferation of smuggled goods, and inconsistent government policies.

Presently, the industrial goods sector consists of four sub-sectors – building materials, electronic and electrical products, packaging/containers, and tools and machinery.

The NSE recently introduced a new index called NSE Industrial Goods Index with 10 foundation members like Ashaka Cement plc, Nigerian Bag Manufacturing Company plc, Dangote Cement plc, Lafarge Cement WAPCO Nigeria plc, CAP plc, Cement Company of Northern Nigeria plc, Berger Paints plc, Cutix plc, DN Meyer plc, and Portland Paints and Products Nigeria plc.

The Industrial index measures the performance of the top 10 performing stocks in the industrial sub-sector of the equities market. These stocks full-year return stood at 40.36 percent in 2012, and their year-to-date return has risen to about 41.18 percent in 2013.