Oando Leads As NSE Reviews Market Indices
The renewed high demand for Oando Plc shares has been reflected in the result of the mid-year review of the Nigerian Stock Exchange indices as the indigenous energy group returned to two indices.
The NSE reviewed the NSE-30, and the seven sectoral indices of the exchange. They are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension and the NSE Lotus Islamic Indices.
According to result of the review made available last Friday by the NSE, Oando Plc and Beta Glass Plc entered the NSE-30 Index, while Diamond Bank Plc and Julius Berger Nigeria Plc were removed. There were no changes in the NSE Banking, NSE Consumer Goods, NSE Industrial Goods recorded no changes.
Again, Oando Plc was added to the NSE Oil/Gas Index, while MRS Oil Nigeria Plc was removed.
The NSE Insurance Index saw the entry of Consolidated Hallmark Insurance Plc, Sovereign Trust Insurance Plc and Veritas Kapital Assurance Plc. On the other hand, Cornerstone Insurance Plc, Staco Insurance and Alliance Insurance Plc exited.
African Prudential Plc and Continental Reinsurance were added to the NSE Pension Index, just as Julius Berger Nigeria Plc and Beta Glass Plc were removed.
Nigerian Aviation Handling Company Plc joined Lotus Islamic Index, while Lafarge Africa Plc exited .
The NSE-30 and NSE Industrial Indices are modified market capitalisation index with the numbers of included stocks fixed at 30 and 10, respectively. The stocks are selected based on their market capitalisation from the most liquid sectors. The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must have traded for at least 70 percent of the number of times the market opened for business.
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 developed the NSE Pension Index in 2013, 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, 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 & Gas sector.
