Wema Bank, Custodian Investment exits NGX 30 index

By Seun Ibiyemi

The Nigerian Exchange Limited (NGX) has removed Wema Bank Plc and Custodian Investment Plc from the NGX 30 following the outcome of the 2022 market index review.

This was contained in the statement released by the NGX on the results of its half-year market index review for the NGX 30, NGX Lotus Islamic, NGX 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 – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods and NGX Oil & Gas.

The NGX-30 index tracks the top 30 companies in terms of market capitalization and the total value of equities listed on the NGX.

The review led to the entry and exit of some companies from several indices that took effect at the opening of the market on Monday, July 3, 2023.

The report showed that Geregu Power Plc and Sterling Financial Holding Plc have replaced Custodian Investment Plc and Wema Bank Plc in the NGX 30 Index.

The indices according to NGX were developed to allow investors to 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 Nigerian bourse 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 fifteen most capitalised and liquid companies in the Insurance and Consumer Goods sectors; the top ten 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 conform with Shari’ah Investment Principles, to increase the breadth of the market and create 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, following a methodology approved by an internationally recognized Shari’ah Advisory Board comprising renowned Islamic scholars.