The Launch of the NSE Premium Board and Its Tracking Index - TNI Q3/E9

Proshare

Thursday, August 27, 2015/ 7.20am / The Nigerian Investor, sss@proshareng.com

The Management of the Nigerian Stock Exchange on Tuesday 25th August, 2015 officially launched the premium board listing platform as well as the premium board index which will serve as a benchmark to track the performance of firms with good corporate governance and sustainable business models

Quoted firms listed on the board must meet NSE stringent criteria of capitalization, governance and liquidity and as such must;

1.       Have minimum market capitalization of N200bn
2.      High Corporate Governance Standard as they must achieve a minimum score of 70% on the stringent Corporate Governance Rating System (CGRS)
3.      They are required to maintain a minimum free float of 20% of their issued share capital or a free float value equal to or above N40 billion

Based on the set criteria, three quoted firms have been admitted to the premium listing board and they are
1.       Dangote Cement Plc
2.      Zenith Bank Plc; and
3.      FBN Holdings Plc

A closer review of the three firms admitted to the Premium Board at inception reveals that they all current records negative YTD performance in terms of share price. FBNH tops with -35.57% loss, ZENITHBANK follows with -23.41% while DANGCEM records the least -15.48% YTD loss as at 25th August, 2015.


On EPS, DANGCEM has the highest figure with 7.15k EPS while ZENITHBANK and FBNH record 1.69k and 1.12k respectively based on Q2’15 financials.




However, a review of the latest NSE X-Compliance Report released as at 7th August, 2015 reveals that
DANGCEM still make the list of firms having free float deficiencies. The firm has 9.07% free float as the free float requirements for firms on the main board is put at 20%.

 

It has been given till 26th October, 2016 to comply fully while the other two firms were not listed among free float deficiencies firms and with the premium board launched, we expect the Exchange to update the market on the free float requirements for the apex board.


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In this edition of #TheNigerianInvestor, we conduct our regular market round-up of innovations, activities, developments, AGM’s, market news, corporate actions, company appointments, announcements as well as updates from market regulators.

 
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