Nigerian Exchange Ltd (NGX) has announced the entry and exit of some companies from its indices on Tuesday.
Mr Clifford Akpolo, Head, Marketing and Corporate Communications, NGX stated this in the results of the NGX half year ended, December 2022, market index review made available in Lagos.
Akpolo said that the review of market indices included : NGX 30, NGX Lotus Islamic, NGX Pension, NGX Pension Broad Index, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index.
He also identified others to include 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 and Gas.
“The review has led to the entry and exit of some companies from several indices which took effect at the open of the market on Jan. 2 2024.
“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 respectively.
“NGX indices are developed to allow investors efficiently track market movements and properly manage investment portfolios,” he said.
According to him, some of the companies which entered the market for trading are : FBN Holdings, Universal Insurance, ZenithBank, United Bank of Africa (UBA), FCMB Group Plc, Guaranty Trust Holding, StanbicIBTC Holding, Universal Insurance Company.
Also, Transcorp Hotel, Fidson Healthcare Plc, Access Bank, Fidelity Bank, WAPCO, MTN Nigeria Communications, Vitafoam Nigeria Plc, AIICO Insurance, Caverton, Julius Berger, among others.
Akpolo listed the companies which exited the Exchange as : Jaiz Bank, Unity Bank, Union Bank, Wema Bank, International Energy Insurance, PZ Cusson Nigeria Plc, Unilever Nigeria Plc, Nestle Nigeria Plc.
Others include Glaxo Smithkline Consumer Nigeria, Dangote Sugar Refinery Plc and FCMB Group, among others.
He noted that NGX continued to blaze the trail on the path to becoming Africa’s foremost securities exchange with innovation and product development.
According to Apolo, this deepens the market and boosts liquidity, therefore connecting Nigeria, Africa and the world.