The Nigerian Exchange Limited (NGX) has disclosed that Oando Plc and Union Bank of Nigeria Plc have exited NGX-30 Index, while BUA Foods Plc and Wema Bank Plc have joined list of most liquid stocks on the bourse.
The NGX-30 index tracks the top 30 companies in terms of total value of equities listed on the NGX (market capitalization) and liquidity.
The NGX in a statement while explaining its results of the full-year review of its market indices, revealed that some changes were witnessed in a few of the indicators, stressing that the review has led to the entry and exit of some companies from several indices that took effect at the opening of the market on Tuesday.
MRS Oil was included in the oil & gas index, while Oando was also removed. While there was no incoming company in the insurance sector, African Alliance Insurance Plc was removed.
In the NGX Pension index, the NGX added Airtel Africa Plc and BUA Foods, while Honeywell Plc and Conoil Plc were removed.
In the NGX Lotus Islamic index, NAHCo Plc, NASCON Allied Industries Plc and Presco Plc exited, while Chemical and Allied Product (CAP) Plc joined the league.
Berger Paints Plc was included in the NGX Corporate Governance Index, while no company was removed.
Meanwhile, the consumer goods, banking and the industrial goods sectors remained unchanged.
The indices, according to the NGX, 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.
The NGX began publishing the NGX 30 Index 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 15 most capitalised and liquid companies in the Insurance and Consumer Goods sectors; the top 10 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.
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 recognised Shari’ah Advisory Board comprising of renowned Islamic scholars.