From Ngozi Onyeakusi, Lagos
The Nigerian Stock Exchange (NSE) has announced the review of the NSE-30 and the seven sectoral indices.
The composition will take effect Jan. 1, 2018 after the completion of the year-end review and index rebalancing exercise.
The exercise would see the entry of some major companies and the exit of others from the various indices.
The seven indices were NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension and the NSE Lotus Islamic Indices.
The indices, according the NSE which were developed using the market capitalisation methodology, were rebalanced on a bi-annual basis, on the first business day in January and in July.
Under the consumer goods index, Northern Nigeria Flour Mills had been granted entry into the indices, while Seven Up was on the exiting side.
Equity Assurance and Mutual Benefit Assurance was considered for entry into the NSE insurance index, while Regency Alliance and Universal Insurance would exit the index.
“Oando is exiting on the NSE Oil and Gas indices, making way for Eterna Oil to enter into the index.
For the NSE Pension index, Honeywell flourmills and International Breweries would be given access to the index, while Oando and Seven –Up are leaving the index,’’ he said.
Stocks were also selected based on market capitalisation and liquidity, noting that liquidity was based on the number of days the stock was traded during the preceding two quarters.
“To be included in the index, the stock must have traded for at least 70 per cent of the number of trading days in the preceding two quarters,’’ he said.