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The Nigerian Exchange Limited (NGX) has removed Conoil Public limited company (Plc), Julius Berger Plc, United Bank for Africa (UBA) Plc and many others from the list of top performing companies in it’s recent market review report.
The NGX confirmed this based on a report on its half-year review of market indices which was released on Tuesday, July 1.
The NGX30 index provides a comprehensive measure of the performance of the Nigerian stock market, offering investors an easy way to invest in the top companies in Nigeria’s economy.
According to the NGX, the changes were made using the market capitalisation approach and took effect at the opening of trading on Tuesday, July 1.
NGX stated that the changes are part of routine adjustments that reflect the evolving state of the market and how listed companies have performed over the past six months.
However, Aradel Holdings Plc and Wema Bank Plc have been included among the top-performing companies.
The report read, “Beyond the NGX30, the review impacted a range of other indices.
“The NGX Consumer Goods Index welcomed McNichols Consolidated Plc, with Golden Guinea Breweries Plc making an exit.
“In the NGX Insurance Index, LASACO Assurance Plc was added, replacing Fortis Global Insurance Plc and International Energy Insurance Plc Austin Laz and Company Plc joined the NGX Industrial Index, as Notore Chemical Industries Plc departed.
“The Afrinvest Dividend Yield Index saw the inclusion of Access Holdings Plc, FCMB Group Plc, and Julius Berger Nigeria Plc.
“Meanwhile, the Meristem Growth Index experienced several changes, with Wema Bank Plc, Chemical and Allied Products Plc, and Guaranty Trust Holding Company Plc joining, while Fidelity Bank Plc, Transnational Corporation Plc, UBA Plc, Unilever Nigeria Plc, and Guinness Nig Plc exited.
“Conversely, UBA Plc, Unilever Nigeria Plc, and Guinness Nig PLC entered the Meristem Value Index, as Julius Berger Nigeria Plc moved out.
“Interestingly, the NGX Banking, NGX Oil & Gas, NGX Pension, NGX Lotus Islamic, Corporate Governance, and NGX Pension Broad Indices saw no changes in their constituents during this half-year review.”
The NGX also revealed that these indices are reviewed twice a year on the first trading day of January and July so as to ensure they accurately represent current market trends.
NGX Chief Executive Officer (CEO), Jude Chiemeka, reaffirmed the agency’s dedication to supporting the growth and development of the market.
He said, “The Exchange continues to blaze the trail on the path to becoming Africa’s foremost securities exchange with innovation and product development that deepen the market and boost liquidity, thus connecting Nigeria, Africa and the world.”
In the same vein, Abimbola Babalola, NGX’s Head of Trading & Products, highlighted the critical role these indices play in providing insight into market performance.
He said, “They are developed, managed and rebalanced semi-annually to allow investors efficiently track market movements and properly manage investment portfolios.
“The compiler of the indices reserves the right to modify the circulated selection in connection with any mergers, takeovers, suspension or resumption of trading, or any other company structure changes before the effective date of the annual review.”
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