Nigerian Exchange Limited (“NGX” or “The Exchange”), Africa’s premier exchange, has released the results of its comprehensive full-year review of market indices.
The review, which encompasses various indices, including the NGX 30, NGX Lotus Islamic, NGX Pension, and others, aims to ensure that the indices remain representative of the market and provide investors with accurate benchmarks.
The review has led to the inclusion and exclusion of several companies from various indices, effective January 2, 2025.
Under the NGX 30 Index, Conoil Plc, International Breweries Plc, Oando Plc, and Transcorp Power Plc have been added, while Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc, and Flour Mills Nig. Plc have been removed.
Other notable changes include the addition of Golden Guinea Breweries Plc to the NGX Consumer Goods Index, with Flour Mills Nig. Plc departing. Wema Bank Plc has joined the NGX Banking Index, while Sterling Holding Company Plc has exited.
The NGX Oil & Gas Index has seen the entry of Aradel Holdings Plc, MRS Plc, and Oando Plc, with Japaul Oil and Services departing.
The NGX Industrial Index remains unchanged, with no new entries or exits. The indices are rebalanced semi-annually, using the market capitalization methodology, to ensure that they remain representative of the market.
In addition to the review, NGX has launched the NGX Equity-Based Commodity Index, a broad market commodity index that tracks the collective movements of companies with primary operations in energy, agriculture, mining, metals, and natural resources.
This index provides investors with potential exposure to the essential raw materials and natural resources that drive global economic activity.
The starting constituents of the index include Geregu Power Plc, Multiverse Mining and Exploration Plc, Okomu Oil Palm Plc, Presco Plc, Seplat Energy Plc, Transcorp Power Plc, and Aradel Holdings Plc. The index’s starting value is set at 1,000.
Commenting on the development, Jude Chiemeka, CEO of NGX, stated, “The Exchange continues to innovate and develop products that deepen the market and boost liquidity, connecting Nigeria, Africa, and the world. Our indices are designed to provide investors with accurate benchmarks and exposure to various sectors of the market.”
Abimbola Babalola, Head of Trading and Products at NGX, emphasized, “Our indices are developed, managed, and rebalanced semi-annually to allow investors to track market movements efficiently and manage their investment portfolios properly.
“We maintain the right to modify the selection above in connection with any mergers, takeovers, suspension, or resumption of trading or any other company structure changes during the period before the effective date of the annual review.”
The NGX remains committed to providing a fair, efficient, and transparent market for all stakeholders, and the results of the full-year market index review demonstrate this commitment.
As the Exchange continues to innovate and develop new products, it is poised to maintain its position as Africa’s premier exchange.
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