Nigerian Exchange Limited, the premier sustainable exchange servicing Africa’s largest economy, has announced the results of its full-year market index review for its indices.
The reviewed indices include; NGX 30, NGX Lotus Islamic, NGX Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index…
Others are; the five Sectoral Indices of The Exchange – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods and NGX Oil & Gas.
The review 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.
Under the NGX 30 Index, BUA Foods Plc. and Wema Bank Plc. replaced outgoing Oando Plc and Union Bank Plc. On the NGX Oil & Gas Index, Oando Nigeria Plc. exited for Mrs Oil Nigeria Plc.
Airtel Africa Plc and BAU Foods Plc. debuted on the NGX Pension Index as Honeywell Plc. and Conoil Plc. took exit.
Under the NGX Lotus Islamic Index, CAP Plc. replaced NAHCO Nigeria Plc., NASCON Nigeria Plc. and Presco Plc. as Berger Paints Plc. debuts on the Corporate Governance Index.
FIDSON Plc. Nigeria Breweries Plc. and Sterling Bank Plc. emerged on the Meristem Growth Index while Dangote Cement Plc, Eterna Plc, Glaxo Smithkline Con. Plc, Seplat Energy Plc and Guaranty Trust Holding Co. Plc bade farewell to the group.
Meristem Value Index saw the entrant of Access Holding Plc, Glaxo Smithkline Con. Plc, May & Baker Nig. Plc and LAFARGE Africa Plc. Other indices on the list remained unchanged.
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.
According to the Nigerian bourse, publishing the NGX 30 Index started 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.
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