LAGOS, JUNE 28, 2017 – AHEAD of the reclassification of the market indices scheduled for next week, about 22 companies have been tipped by the Nigerian Stock Exchange, NSE, to be included in the six sectoral indices and NSE 30 Index.
The NSE normally reviewed these indices bi-annually (June and December) except for NSE Pension index that is reviewed once in a year (December).
The companies are as follows: For NSE 30 Index includes Fidelity Bank Plc, Sterling Bank Plc, Diamond Bank Plc, Cadbury Nigeria Plc and First City Monument Bank, FCMB Plc. NSE Lotus Islamic Index: Total Nigeria Plc and Nigerian Aviation Handling Company Plc. NSE Consumer Goods Index: Nigeria Enamelware Plc, Northern Nigerian Flour Mills, Union Dicon Salt Company Plc. NSE Banking Index: Skye Bank Plc and Unity Bank Plc. NSE Insurance Index: Linkage Assurance Plc, Regency Alliance Insurance Plc, Consolidated Hallmark Insurance Company Plc, and Equity Assurance Plc. NSE Oil & Gas Index: Japaul Oil & Maritime Services Plc and Eternal Plc and NSE Industrial Index: Grief Nigeria Plc, First Aluminium Nigeria Plc and African Paints Plc.
Managing Director/Chief Executive Officer, APT Securities & Funds Limited, a dealing member of the NSE, Mr. Kasimu Garba Kurfi, informed that the NSE has criterion for inclusion or otherwise. The conditions, according to him, include liquidity or activities about the stocks, capitalisation, timely rendition of reports and information, among others. He stated: “I have no doubt that once a company meet the condition within a period of three months deserve to be included.”
Managing Director/Chief Executive Officer of HighCap Securities Limited, Mr. David Adonri stated: “Although the NSE has its criteria for selection, an important factor could be the performance of stocks in the market over a period of time, notwithstanding their fundamentals. Therefore, it is a good thing that some stocks now making wave in terms of liquidity are now being considered. So any company being shown deserved to be included in the NSE indices.”
Conversely, the 21 likely companies to be dropped from the market indices include: NSE 30 Index, we have Conoil Plc, UACN Plc, Julius Berger Nigeria Plc, 7UP Bottling Company Plc, and Okumu Oil Palm Plc. NSE Lotus Islamic Index: Forte Oil Plc, and 7UP Bottling Company Plc.
NSE Consumer Goods Index: Vitafoam Nigeria Plc, Honeywell Flour Mills Plc, Dangote Flour Mills Plc. NSE Banking Index; Sovereign Trust Insurance Plc, Unity Kapital Assuarnce Plc, Mutual Alliance Insurance Plc, Staco Insurance Plc and Prestige Assurance Plc. NSE Oil & Gas Inde: MRS Oil Nigeria Plc and Conoil Plc and NSE Industrial Index: Portland Paints & Products Nigeria Plc, Painst & Coatings Plc and DN Meyer Plc.
With the review, the NSE 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.