NSE announces review of the NSE 30, and 6 sectoral indices of the Exchange

NEWS AGENCIES

8 years ago

Nigerian Stock Exchange (NSE or “The Exchange”) is pleased to announce 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 (June and December) except for NSE Pension index that is reviewed once in the year (December). With the review, we will witness the entry/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.

Indices Title	Likely Incoming	Likely Exiting
NSE 30 Index	Fidelity Bank Plc Sterling Bank Plc Diamond Bank Plc Cadbury Nigeria Plc FCMB Group Plc	Conoil Plc UACN Plc Julius Berger Nig. Plc 7-Up Bottling Co. Plc The Okomu Oil Palm Plc
NSE Lotus Islamic Index	Total Nigeria Plc Nigerian Aviation Handling Co. Plc	Forte Oil Plc 7&up Bottling Co. Plc
NSE Consumer Goods Index	Nig. Enamelware Plc Northern Nigeria Flour Mills Union Dicon Salt Co. Plc	Vitafoam Nigeria Plc Honeywell Flour Mills Plc Dangote Flour Mills Plc
NSE Banking Index	Skye Bank Plc Unity Bank Bank Plc	Wema Bank Plc Diamond Bank Plc
NSE Insurance Index	Linkage Assurance Plc Regency Alliance Insurance Plc Consolidated Hallmark Insurance Plc Universal Insurance Co. Plc Equity Assurance Plc	Sovereign Trust Insurance Plc Unity Kapital Assurance Plc Mutual Alliance Insurance Plc Staco Insurance Plc Prestige Assurance Plc
NSE Oil & Gas Index	Japaul Oil & Maritime Services Plc Eterna Plc	MRS Oil Nigeria Plc Conoil Plc
NSE Industrial Index	Grief Nig. Plc First Aluminium Nige Plc African Paints Plc	Portland Paints & Products Nig. Plc Paints & Coatings Plc 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.