By Kayode Tokede
First City Monument Bank Plc (FCMB) , MTN Nigeria plc and CCNN Plc have joined the Nigerian Stock Exchange (NSE) 30 index with the likes of Forte Oil Pl, Oando Plc and PZ Industries Plc exiting.
The Exchange announced the results of its annual full year market index review for the following indices – the NSE 30, NSE Lotus Islamic, NSE Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index; and the five Sectoral Indices of The Exchange – NSE Banking, NSE Insurance, NSE Industrial, NSE Consumer Goods and NSE Oil & Gas.
The review has led to the entry and exit of major companies from several indices which will take effect when the market opens on Wednesday, January 2, 2020.
The indices were developed to allow investors to follow market movements and properly manage investment portfolios. Designed using the market capitalization methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.
The 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 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 capitalized and liquid companies in the Insurance and Consumer Goods sectors; the top ten 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 Exchange in collaboration with issuers like Lotus Capital, Meristem Securities and Afrinvest have also published co-branded indices.