Nigerian Exchange (NGX) Limited has announced the results of its half 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 effective Thursday, 1 July 2021. For the NGX 30 Index, United Capital Plc has replaced 11 Plc (delisted); while Vitafoam Nigeria Plc replaced 11 Plc (delisted) in NGX Pension Index. NGX Lotus Islamic Index has new entrants –namely Presco Plc and Nigerian Aviation Handling Company Plc, while Chemical and Allied Paints Plc and Cadbury Nigeria Plc exited the index. The Afrinvest Bank Value Index saw new entrants like Fidelity Bank Plc and FCMB Plc while United Bank for Africa Plc exited.
Dangote Cement Plc has replaced Africa Prudential Plc and Vitafoam Plc in the Afrinvest Div Yield Index. Aiico Insurance Plc, Jaiz Bank Plc, Presco Plc, and PZ Cussons Nigeria Plc replaced Africa Prudential Plc, Ardova Plc, Dangote Cement Plc, and Glaxo Smithkline Consumer Nigeria Plc in the Meristem Growth Index. Ardova Plc, Custodian Investment Plc, and Unilever Nigeria Plc have entered Meristem Value Index while Conoil Plc, Presco Plc, Wema Bank Plc and Nascon Allied Industries Plc exited.
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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.
It would be recalled that NGX recently announced the rebranding of its indices in line with NGX’s drive to standardise and ensure consistent expression of the brand across touch-points. All indices were rebranded with a pre-fix, NGX – formerly NSE – to promote brand awareness and recognition. The exercise did not, however, affect the computation methodology of the indices.
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 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.
Furthermore, NGX has collaborated with other capital market players to publish co-branded indices including Lotus Capital Limited, Meristem Securities Limited and Afrinvest Securities Limited.
