Stock Exchange announces biannual review results

The Nigerian Stock Exchange (NSE) has announced the results of the biannual review for the NSE and co-branded indices. The composition of these indices after the review will be effective on Monday July 1, 2019.

Below are the incoming and exiting companies in the various indices:

Custodian Investment Plc comes under the NSE 30 Index as NSE Consumer Index welcomes MCNICHOLS Plc, while Dangote Flour Mills Plc exits both the NSE 30 Index and NSE Consumer Index.

While no company will be exiting Meristem Value Index, Access Bank Plc, Presco Plc and United Capital Plc will be coming in under this index.

Also, no company will be exiting the Afrinvest Div Yield Index but welcomes in Africa Prudential Plc.

Whereas for Meristem Growth Index, Sterling Bank plc, Zenith Bank Plc and Nigerian Aviation Handling Company Plc will be exiting as Africa Prudential Plc comes in.

After exiting Meristem Growth Index, Nigerian Aviation Handling Company Plc comes in to Lotus Islamic Index as Total Nigeria exits.
Veritas Kapital Assurance Plc comes in to NSE Insurance Index as SUNU Assurances Nigeria Plc exits.

For NSE Industrial Index, NOTORE Chemical Industry Plc comes in as First Aluminium Plc exits.

However, no companies exit or come under the NSE Banking Index, NSE Oil and Gas, NSE Pension Index, Corporate Governance Index and Afrinvest Bank Value Index. They remain as they are.

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 with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.

The Insurance and Consumer Goods Indices are composed of the top fifteen most capitalized and liquid companies in their specific sector.

The Banking and Industrial Goods Indices are composed of the top ten most capitalized and liquid companies in their respective sectors, while the Oil & Gas Index is made up of the top seven most capitalized and liquid companies in the sector.

In July 2012, the Nigerian bourse launched the NSE Lotus Islamic Index (NSE 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 non-interest 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 recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.

The NSE in collaboration with Afrinvest Securities Limited launched the NSE-Afrinvest Banking Value Index and NSE-Afrinvest High Dividend Yield Index in January 2019. They were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the Exchange.

In March 2019, the NSE also collaborated with Meristem Securities Limited, to launch the NSE-Meristem Growth Index and NSE-Meristem Value Index. These indices provide a benchmark for the market to gauge the performances of value stocks and growth stocks listed on the Exchange.