The Nigerian Exchange Limited (NGX) has announced the results of its full-year market index review for the following indices – NGX 30; NGX Lotus Islamic; NGX Pension; NGX Pension Broad Index; Corporate Governance Index; Afrinvest Bank Value Index; Afrinvest Dividend Yield Index; Meristem Growth Index; Meristem Value Index; and the five Sectoral Indices of The Exchange – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods and NGX Oil & Gas.
According to the statement by the NGX, the review has led to the entry and exit of some companies from several indices which took effect at the opening of the market on Thursday, 2 January 2025.
It explained that the incoming and exiting companies in the various indices are designed using the market capitalization methodology and that the indices are rebalanced semi-annually on the first business day in January and July respectively.
It added that the Exchange has also launched the NGX Equity-Based Commodity Index, a broad market commodity index that captures and tracks the collective movements of companies with primary operations in energy, agriculture, mining, metals, and natural resources. Through the Equity-Based Commodity Index, investors are provided with potential exposure to the essential raw materials and natural resources that drive global economic activity.
The starting constituents of the index are Geregu Power Plc, Multiverse Mining and Exploration Plc, Okomu Oil Palm Plc, Presco Plc, Seplat Energy Plc, Transcorp Power Plc, and Aradel Holdings Plc. The index’s starting value is set at 1,000.
Speaking on the review, Mr. Jude Chiemeka, the CEO of the NGX, reiterates that the Exchange continues to blaze the path to becoming Africa’s foremost Securities Exchange with innovation and product developments that deepen the market and boost liquidity, thus connecting Nigeria, Africa, and the world.
In his remarks, Abimbola Babalola, Head, Trading & Products, emphasized that the NGX indices are developed, managed, and rebalanced semi-annually to allow investors to track market movements efficiently and manage their investment portfolios properly.
He explained that 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.
GIK/APA