Fidelity Bank Plc, Sterling Bank Plc, Diamond Bank Plc, Cadbury Nigeria Plc, FCMB Group Plc likely inclusion as Nigerian Stock Exchange reviews Market Indices

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Lagos, JUNE 22 2017– The Nigerian Stock Exchange (NSE or “The Exchange”) say it is poised to review the NSE 30, and the six sectoral indices of the Exchange, which are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and the NSE Lotus Islamic Indices.

These indices are normally reviewed bi-annually (June and December) except for NSE Pension index that is reviewed once in the year (December).

“With the review, we will witness the entry/re-entry as well as exit of some major companies. The composition of these indices after the review will be effective on July 1, 2017,” according to the Exchange, in release made available to theG&BJournal.

The Exchange listed Fidelity Bank Plc, Sterling Bank Plc, Diamond Bank Plc, Cadbury Nigeria Plc and  FCMB Group Plc as the firms likely to be included in the new NSE 30 index while Conoil Plc, UACN Plc, Julius Berger Nig. Plc, 7-Up Bottling Co. Plc and The Okomu Oil Palm Plc are likely to be dropped

The NSE-30 and NSE Industrial Indices are modified market capitalization index with the numbers of included stocks fixed at 30 and 10, respectively. The Stocks are selected 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 have traded for at least 70 percent of the number of times the market opened for business.

The Exchange say it is aware that the number of the stocks included in some of the indices may not be practically suitable for optimal portfolio diversification; however, the numbers would be reviewed as sector conditions change.

The NSE 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 developed the NSE Pension 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 15 most capitalized and liquid companies in the Insurance and Consumer Goods sectors, top 10 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.

According to the NSE the compiler of the indices maintains the right to modify the circulated selection above in connection with any mergers, takeovers, suspension or resumption of trading or any other company structure changes during the period before the effective date of the annual review.

Below are the likely incoming and likely exiting companies in the various indices

 

 Indices Title Likely Incoming Likely Exiting
NSE 30 Index  

 Fidelity Bank Plc

 Sterling Bank Plc

 Diamond Bank Plc

 Cadbury Nigeria Plc

 FCMB Group Plc

 

 

 Conoil Plc

 UACN Plc

 Julius Berger Nig. Plc

 7-Up Bottling Co. Plc

 The Okomu Oil Palm Plc

 

NSE Lotus Islamic Index  

 Total Nigeria Plc

 Nigerian Aviation Handling Co. Plc

 

 

 Forte Oil Plc

 &up Bottling Co. Plc

 

NSE Consumer Goods Index  

 Nig. Enamelware Plc

 Northern Nigeria Flour Mills

 Union Dicon Salt Co. Plc

 

 

 Vitafoam Nigeria Plc

 Honeywell Flour Mills Plc

 Dangote Flour Mills Plc

 

NSE Banking Index  

 Skye Bank Plc

 Unity Bank Bank Plc

 

 

 Wema Bank Plc

 Diamond Bank Plc

 

NSE Insurance Index  

 Linkage Assurance Plc

 Regency Alliance Insurance Plc

 Consolidated Hallmark Insurance Plc

 Universal Insurance Co. Plc

 Equity Assurance Plc

 

 

 Sovereign Trust Insurance Plc

 Unity Kapital Assurance Plc

 Mutual Alliance Insurance Plc

 Staco Insurance Plc

 Prestige Assurance Plc

 

NSE Oil & Gas Index  

 Japaul Oil & Maritime Services Plc

 Eterna Plc

 

 

 MRS Oil Nigeria Plc

 Conoil Plc

 

NSE Industrial Index  

 Grief Nig. Plc

 First Aluminium Nige Plc

 African Paints Plc

 

 

 Portland Paints & Products Nig. Plc

 Paints & Coatings Plc

 DN Meyer Plc

 

 

DCSL 90X780

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