The review of the indexes done by the Nigerian Exchange Limited has seen some banking stocks, such as FBN Holdings, Guaranty Trust Holding Company Plc, FCMB Group, and Stanbic IBTC Holdings Plc, added to the Banking Index.
In a corporate announcement from the exchange on Tuesday,
the equities of Jaiz Bank, Unity Bank, Wema Bank and delisted Union Bank of
Nigeria are exiting the Banking Index.
Stanbic IBTC and FCMB Group were previously identified as
other financial institutions.
Index rebalancing is the process of adjusting the
composition of a market index, ensuring it’s reliable and relevant. Rebalancing
can cause significant shifts in trading volumes, affecting stock prices, sector
trends, and broader market sentiment.
The NGX’s indices are rebalanced on a semi-annual basis on
the first business day in January and in July respectively.
“Nigerian Exchange Limited has announced the results of its
half-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.
“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 Tuesday,
2 January 2024. Below are the incoming and exiting companies in the various
indices,” part of the corporate notice read.
For the Insurance index, Universal Insurance Plc joined the
index while International Energy Insurance Plc exited. The Pension index will
be boosted by the addition of Transcorp Hotels Plc, Fidson Healthcare Plc,
Nigerian Aviation Handling Company Plc and Conoil while PZ Cussons Nigeria Plc,
Nascon Allied Industries Plc and
Unilever Nigeria Plc are expected to exit.
NGX Lotus Islamic Index will witness the exit of Nestle
Nigeria Plc. The Pension Broad Index will welcome Geregu Power Plc and say
goodbye to Glaxo Smithkline Consumer Nigeria Plc. The likes of MTN Nigeria,
Vitafoam, Stanbic IBTC Holdings and NPF microfinance bank plc will be added to
the Afrinvest Div Yield Index while Dangote Sugar Refinery, FCMB Group, GSK and
Cutix will exit the index.
Meanwhile, the NGX closed with over N13tn gain for investors
in the equity market in 2023. This gain nearly tripled the figure recorded in
2022, which stood at N5.619tn, after the market capitalisation closed at
N27.915tn.
At the close of the year’s trading activities, investors on
the local bourse had gained N13.003tn as the market capitalisation closed at
N40.917tn. Similarly, the benchmark index of the exchange, the All-Share Index,
had also appreciated. Its year-to-date gains stood at 45.90 per cent with the
ASI at 74,773.77 points at the end of trading in 2023. This is a significant
increase as the ASI had closed 2022 with YTD of 19.98 per cent.
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