NGX reveals result of market indices review

The Nigerian Exchange (NGX) Ltd has announced the results of its full year market index review to enable investors follow market movements and manage investment portfolios.

This is contained in a statement by the NGX made available to our correspondent on Tuesday in Lagos.

The statement listed the indices as NGX 30, NGX Lotus Islamic, NGX Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index and Meristem Value Index.

It added that the review led to the entry and exit of some companies from several indices which took effect when the market opened on Jan. 4.

The statement said that the incoming and exiting companies in the various indices included: NGX 30 Index showed Oando as incoming and Nasco Allied Industries Ltd.

The statement listed United Bank for Africa as incoming under Afrinvest Bank Value Index, while FCMB exited.

Also, under Afrinvest Div Yield Index: Guinness, Vitafoam, Triple Gee and Company as incoming while AIICO Insurance, Conoil, Fidelity Bank and United Capital exited.

The statement explained that the indices were developed to allow investors to follow market movements and properly manage investment portfolios.

The indices were 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.

The Nigerian bourse began publishing the NGX 30 Index in Feb. 2009 with index values available from Jan. 1, 2007.

On July 1, 2008, the NGX developed five sectoral indices 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 capitalised and liquid companies in the insurance and consumer Goods sectors.

The top 10 most capitalised and liquid companies in the banking and industrial goods sector; and the top seven most capitalised and liquid companies in the Oil & Gas sector.

In July 2012, the Exchange launched the NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices are in conformity with Shari’ah Investment Principles.