The Nigerian Stock Exchange (NSE), has released the results for the review of its annual full year market index.
Some of the market indexes reviewed were the NSE 30, NSE Lotus Islamic, NSE 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 – NSE Banking, NSE Insurance, NSE Industrial, NSE Consumer Goods and NSE Oil & Gas.
The review has led to the entry and exit of major companies from several indices which will take effect immediately transactions opened on Monday.
According to NSE index result, under NSE 30 index, Julius Berger would be exiting giving way for Transnational Corporation of Nigeria Plc to come in. The report disclosed that Niger Insurance Plc would be exited making provision for entry of Veritas Kapital Assurance Plc and Africa Alliance Insurance Plc under NSE Insurance index.
However, under NSE Oil and Gas Index, MRS Oil Plc would be exiting as Eterna Plc would be welcoming into the sector while PZ Cussons Nigeria Plc would be leaving NSE Lotus Islamic index without any replacement.
The result showed that BUACement Plc, Glaxo Smithkline Consumer Nigeria Plc, Okomu Oil Plc and Wema Bank would be exiting Meristem Growth Index, paving way for Access Bank, Cadbury Nigeria Plc, Guaranty Trust Bank Plc and Julius Berger Nigeria to come in.
The NSE said that the indices were developed to allow investors to follow market movements and properly manage investment portfolios. It said the indices was designed using the market capitalization methodology, and are rebalanced on a semi-annual basis on the first business day in January and in July.
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 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.
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.
