​​NSE Reviews Composition of Market Indices

Friday, December 28, 2018

The Nigerian Stock Exchange (NSE or “The E​xchange”) is pleased to announce the review of the NSE-30, and the eight sectoral indices of the Exchange, which are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension, NSE Lotus Islamic and NSE Corporate Governance Indices. The composition of these indices is effective January 1, 2019, after the completion of the year-end review and index rebalancing exercise which will see the entry of some major companies and the exit of others from the various indices.


Index TitleIncomingExiting
NSE-30 IndexSterling Bank PlcBeta Glass Co. Plc
   
NSE Consumer Goods IndexNilNil
   
NSE Banking IndexJaiz Bank PlcDiamond Bank Plc
   
NSE Insurance IndexConsolidated hallmark Insurance Plc, Sovereign Trust Insurance Plc, Regency Assurance PlcContinental Reinsurance Plc, Staco Insurance Plc, Standard Alliance Insurance Plc
   
NSE Industrial IndexNo ChangeNo Change
   
NSE Oil/Gas IndexMRS Oil Nig PlcEterna Plc
   

NSE Pension  Index

 

CCNN Plc, Beta Glass Co. Plc, Julius Berger PlcDiamond Bank Plc, Continental Reinsurance Plc,Ecobank International Incorporated.
Lotus Islamic IndexJaiz Bank PlcNig Aviation Handling Co. Plc
 Corporate Governance IndexNIlNEM Insurance Plc, Diamond Bank Plc, Continental Reinsurance Plc


The indices, which were developed using the market capitalization methodology, are rebalanced on a biannual basis, the first business day in January and in July. The Stocks are selected based on market capitalization and liquidity. The liquidity is based on the number of days the stock is traded during the preceding two quarters. To be included in the index, the stock must have traded for at least 70 percent of the number of trading days in the preceding two quarters.

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 Insurance and Consumer Goods sector index, comprises the 15 most capitalized and liquid companies; Banking and Industrial Goods sector index, comprised of 10 most capitalized and liquid companies, while the Oil & Gas sector index, is composed of the seven most capitalized and liquid companies.

 

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.​