NGX Launches Equity-based Commodity Index to Track Performance
The Nigerian Exchange Limited (NGX) has introduced an Equity-Based Commodity Index designed to track the performance of companies in the energy, agriculture, mining, metals, and natural resources sectors.
The index, which debuts with an initial value of 1,000, includes Geregu Power Plc, Multiverse Mining and Exploration Plc, Okomu Oil Palm Plc, Presco Plc, Seplat Energy Plc, Transcorp Power Plc, and Aradel Holdings Plc.
In addition to the new index, NGX has announced significant updates to its existing indices. The NGX 30 Index, which monitors the largest and most liquid companies, will see the inclusion of Conoil Plc, International Breweries Plc, Oando Plc, and Transcorp Power Plc, replacing Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc, and Flour Mills Nigeria Plc. Similarly, the NGX Consumer Goods Index will add Golden Guinea Breweries Plc, while Flour Mills Nigeria Plc exits.
The NGX Banking Index will gain Wema Bank Plc, replacing Sterling Holding Company Plc. Changes to the NGX Insurance Index include the addition of Guinea Insurance Plc and International Energy Insurance Plc, while LASACO Assurance Plc and Mutual Benefits Assurance Plc exit. The NGX Industrial Index will remain unchanged, but the NGX Oil & Gas Index will add Aradel Holdings Plc, MRS Plc, and Oando Plc, with Japaul Oil and Services exiting.
Other adjustments include the NGX Pension Index, where Aradel Holdings Plc and Transcorp Power Plc replace Flour Mills Nigeria Plc and Cadbury Nigeria Plc. In the NGX Lotus Islamic Index, Aradel Holdings Plc will join, while Dangote Sugar Refinery Plc exits. The Corporate Governance Index and Afrinvest Bank Value Index will remain unchanged.
Further updates show Red Star Express Plc joining the Afrinvest Div Yield Index, while FCMB Group Plc and Dangote Cement Plc exit. In the Meristem Growth Index, FCMB Group Plc will be added, while Access Bank Plc and Zenith Bank Plc will be removed. The Meristem Value Index will welcome Access Bank Plc, Dangote Sugar Refinery Plc, and Zenith Bank Plc, replacing AIICO Insurance Plc, Nigerian Breweries Plc, FCMB Group Plc, and Flour Mills Nigeria Plc.
Highlighting the importance of the developments, the Chief Executive Officer of NGX, Jude Chiemeka, said, “The Exchange continues to advance towards its goal of becoming the leading securities exchange by introducing products that deepen the market and enhance liquidity while connecting Nigeria to the global economy.
The Head of Trading & Products at NGX, Abimbola Babalola, emphasized the significance of the semi-annual rebalancing, stating, “The Exchange’s indices are managed and rebalanced semi-annually, allowing investors to track market movements effectively and optimise their investment strategies.”
