BUA Foods, Wema Bank join index for large-cap stocks
BUA Foods Plc and Wema Bank Plc have received the green light from the Nigerian Exchange Limited to join the group of the most capitalised stocks on the bourse.
The NGX announced on Tuesday the results of its full-year market index review for the following indices: the NGX 30, NGX Lotus Islamic, NGX Pension, 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.
The NGX 30 Index tracks the top 30 companies in terms of market capitalisation and liquidity. Oando Plc is exiting the index, according to a statement by the NGX.
“The indices were developed to allow investors track market movements and properly manage investment portfolios. 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,” it said.
The Nigerian bourse began publishing the NGX 30 Index in February 2009 with index values available from January 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 and gas sector.
In July 2012, the Nigerian bourse launched the NGX Lotus Islamic Index, which consists of companies whose business practices are in conformity with Shari’ah Investment Principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened. The companies that appear on the Islamic Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognised Shari’ah Advisory Board comprising of renowned Islamic scholars.
