• Wednesday, February 28, 2024
businessday logo

BusinessDay

NSE reviews market indices

NSE reviews market indices

The Nigerian Stock Exchange (NSE) has released the results of the biannual review for the NSE and co-branded indices.

The composition of the indices after the review became effective on Monday July 1, 2019.

BusinessDay checks show that Custodian Investment Plc has replaced Dangote Flour Mills Plc in NSE 30 index, while in the NSE Consumer Goods Index, Mcnichols Plc replaced Dangote Flour Mills Plc.

On July 1, 2008, the NSE developed four sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.  These are in addition to the All-Share Index, which measures the overall performance of the local market.

While there were no changes in the NSE Banking and NSE Oil & Gas indices, NSE Insurance Index has Veritas Kapital Assurance Plc replace Sunu Assurances Nigeria Plc.

The Insurance and Consumer Goods Indices are composed of the top fifteen most capitalized and liquid companies in their specific sector.

The Banking and Industrial Goods Indices are composed of the top ten most capitalized and liquid companies in their respective sectors, while the Oil & Gas Index is made up of the top seven most capitalized and liquid companies in the sector.

In the NSE Industrial Index, Notore Chemical Industries Plc has replaced First Aluminum Plc, while there was no change in the NSE Pension Index.

In the NSE Lotus Islamic Index, Nigerian Aviation Handling Company Plc replaced Total Nigeria Plc, while there was no change in the Corporate Governance Index.

The Nigerian bourse began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007.

In July 2012, the Nigerian bourse launched The NSE Lotus Islamic Index (NSE 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 recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.

The NSE in collaboration with Afrinvest Securities Limited launched the NSE-Afrinvest Banking Value Index and NSE-Afrinvest High Dividend Yield Index in January 2019.

They were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the Exchange.

In March 2019, NSE also collaborated with Meristem Securities Limited, to launch the NSE-Meristem Growth Index and NSE-Meristem Value Index.

These indices provide a benchmark for the market to gauge the performances of value stocks and growth stocks listed on the Exchange.

The composition of Afrinvest Bank Value Index remains the same, according to the released result. Afrinvest Div Yield Index has new entrant -Africa Prudential Plc while there was no exit.

Africa Prudential Plc has made the Meristem Growth Index, while Sterling Bank Plc, Zenith Bank Plc, and Nigerian Aviation Handling Company Plc exited. Access Bank Plc, Presco Plc, and United Capital Plc are new entrants in the Meristem Value Index while no company left.