Nigerian Stock Exchange to review market indices

Salamatu Ejembi, Lagos

The Nigerian Stock Exchange has announced the expected review of the

NSE 30, and the six sectoral indices of the Exchange, which are NSE

Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil &

Gas and the NSE Lotus Islamic Indices.

These indices are normally reviewed bi-annually, that is from June and

December, this is however with the exception of NSE Pension index

which is reviewed once in the year, that is in December.

According to NSE, the review, will witness the entry and or re-entry

as well as exit of some major companies.

The composition of these indices after the review will be effective on

July 1, 2017.

Below are the likely incoming and likely exiting companies in the

various indices.

NSE 30

Likely Incoming;

Fidelity Bank Plc, Sterling Bank Plc, Diamond Bank Plc, Cadbury

Nigeria Plc and FCMB group Plc.

Likely to exit;

Coinoil Plc, UACN Plc, Julius Berger Nigeria Plc, 7-UP Bottling Co Plc

AND Okomu Oil Palm Plc.

Lotus Islamic

Likely incoming;

Total Nigeria Plc and Nigerian Aviation Handling Co PLC.

Likely To Exit;

Forte Oil Plc and 7-Up Bottling Co Plc.

NSE CONSUMER GOODS INDEX

Likely Incoming;

Nigeria Enamelware Plc, Northern Nigeria Flour Mills, Union Dicon Salt Co Plc.

Likely to Exit;

Vitafoam Nigeria Plc, Honeywell Flour Mills Plc and Dangote Flour Mills Plc.

NSE Banking Index

Likely incoming;

Skye Bank Plc and Unity Bank Plc

Likely to exit are;

Wema Bank Plc and Diamond Bank Plc.

NSE Insurance Index

Likely incoming;

Linkage Assurance Plc, Regency Alliance Insurance Plc, Consolidated

Hallmark Insurance Plc, Universal Insurance Co. Plc and Equity

Assurance Plc.

Likely to exit;

Soverign Trust Insurance Plc, Unity Kapital Assurance Plc, Mutual

Alliance Insurance Plc, Staco Insurance Plc and Prestige Assurance

Plc.

NSE Oil and Gas

Likely incoming;

Japaul Oil and Maritime Services Plc and Eterna Plc.

Likely to exit;

MRS Oil Nigeria Plc and Coinoil Plc.

NSE Industrial Index

Likely incoming;

Grief Nig Plc, First Alluminium Nig Plc and African Paints Plc.

Likely to exit;

Portland Paints and Products Nigeria Plc, Paints and Coatings Plc and

DN Meyer Plc.

The NSE-30 and NSE Industrial Indices are modified market

capitalization index with the numbers of included stocks fixed at 30

and 10, respectively.

The Stocks are selected based on their market capitalization from the

most liquid sectors.

The liquidity is based on the number of times the stock is traded

during the preceding two quarters.

To be included, the stock must have traded for at least 70 percent of

the number of times the market opened for business.

The Exchange is aware that the number of the stocks included in some

of the indices may not be practically suitable for optimal portfolio

diversification; however, the numbers would be reviewed as sector

conditions change.

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 four sectoral indices and developed

the NSE Pension Index in 2013, 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 15 most capitalized and liquid

companies in the Insurance and Consumer Goods sectors, top 10 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.

The indices, which were developed using the market capitalization

methodology, are rebalanced on a biannual basis on the first business

day in January and in July.

Ime N