NSE Reviews Composition of Market Indices; SEPLAT, STERLNBANK Are Likely Incomings

Proshare

Wednesday, December 17, 2014 6.55PM/NSE

  

 

The Nigerian Stock Exchange (NSE) is putting final touches to the Year End review for the NSE 30, NSE 50 and the five Sectoral Indices of The Exchange -the NSE Banking, the NSE Consumer Goods, the NSE Oil & Gas, NSE Industrial and the NSE Insurance. The composition of these indices after the review will be effective on January 1, 2015. The review will witness the entry of some major companies and exit of others.

 

Indices Title

Likely Incoming

Likely Outgoing

 

 

 

NSE 30 index

7Up Bottling Co. Plc

Ashaka Cement Plc

Seplat Petroleum Plc

Total Nigeria Plc

Sterling Bank Plc

Fidelity Bank Plc

Mobil Oil Nigeria Plc

Glaxo Smithkline Consumer Plc

Unity Bank Plc

FCMB Group Plc

NSE 50 Index

 

 

Seplat Petroleum Plc

WAPIC Insurance Plc

Beta Glass Co. Plc

Continental Reinsurance Plc

Caverton Offshore Support Group Plc

MRS Oil Nigeria Plc

Ikeja Hotels Plc

Cement Co. of Nigeria Plc

 

 

NSE Consumer Goods Index

 

 

DN Tyre & Rubber Plc

Vitafoam Nig Plc

Union Dicon Salt Plc

Champion Breweries Plc

Vono Products Plc

National Salt Co. Nigeria Plc

Northern Nigeria Flour Mills Plc

Dangote Flour Mills Plc

NSE Banking Index

 

 

Wema Bank Plc

Skye Bank Plc

Unity Bank Plc

Fidelity Bank Plc

NSE Insurance Index

 

 

Law Union & Rock Insurance Plc

Unity Kapital Assurance Plc

Prestige Assurance Plc

Staco Insurance Plc

Linkage Assurance Plc

Equity Assurance Plc

Guinea Insurance Plc

Universal Insurance Plc

 

 

 

NSE Oil & Gas Index

Seplat Petroleum Plc

Conoil Plc

Japaul Oil Maritime Services Plc

Eterna Plc

Beco Petroleum Products Plc

MRS Oil Nigeria

NSE Industrial Index

 

 

Avon Crowncaps & Containers Nig Plc

Cutix Plc

Greif Nigeria Plc

Portland Paints & Products Plc

DN Meyer Plc

Paints & Coatings Manufacturers Plc

Source: NSE




 


As the Index Committee explained, The NSE-30, NSE-50 and NSE Industrial Indices are modified market capitalization index with the numbers of included stocks fixed at 30, 50 and 10, respectively. The numbers of included stocks in the NSE-Consumer Goods, Banking, Insurance and Oil/Gas Indices are 15, 10, 15 and 7, respectively.

 

The Stocks will be picked based on their market capitalization from the most liquid sectors. The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must be traded for at least 70 percent of the number of times the market opened for business.

 

The Committee further stated that the exchange was not oblivious of the fact that the number of the stocks that will be included in some of the indices may be inappropriate for optimal portfolio diversification; however, the numbers would be reviewed as sector conditions change.

 

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 and one index in 2013, 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, 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 indices, which were developed using the market capitalization methodology, are rebalanced on a biannual basis -on the first business day in January and in July.

 

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