• Wednesday, September 27, 2023
businessday logo


BUA Foods, Wema Bank make NGX 30 Index as Oando, Union Bank exit

NGX Regulation Limited (NGX RegCo) has released the “Code of Conduct for Approved Persons of Trading License Holders” of Nigerian Exchange Limited (NGX), in keeping with its commitment to promoting high professional standards and ethical conduct within the capital market.

BUA Foods Plc and Wema Bank Plc have been included in the NGX 30 Index while Oando Plc and Union Bank Plc exited.

NGX 30 Index tracks the top 30 companies in terms of market capitalisation and liquidity. It is a price index and is weighted by adjusted market capitalisation.

The Nigerian Exchange Limited (NGX) on Tuesday January 3 announced the results of its full-year market index review for the following indices – the NGX 30, NGX Lotus Islamic, NGX 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 – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods and NGX Oil & Gas.

The review has led to the entry and exit of some companies from several indices that took effect at the opening of the market on Tuesday, January 3, 2023.

Read also: Insurance consumers reject 200% increase in third-party motor premiums

The indices were developed to allow investors track market movements and properly manage investment portfolios. Designed using the market capitalisation 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 NGX 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NGX 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 capitalised and liquid companies in the Insurance and Consumer Goods sectors; the 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 & Gas sector.

In July 2012, the Nigerian bourse launched The NGX Lotus Islamic Index (NGX LII) 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.