The Nigerian Stock Exchange revealed this in its results of full-year review of market indices.
The review of market indices is an annual activity for the NSE, which leads to the entry and exit of major companies from several indices.
The NSE said the entry and exit of companies took effect when the market opened on Thursday, January 2, 2020.
The NSE 30 Index tracks the top 30 companies in terms of market capitalisation and liquidity.
It is a price index and is weighted by adjusted market capitalisation — the number of a company’s listed shares, multiplied by the closing price of that company, multiplied by a capping factor. Only fully paid-up common shares are included in the index.
While Forte Oil, Oando and PZ Cussons dropped from the top 30 companies on the NSE, Cement Company of Northern Nigeria Plc, First City Monument Bank Plc and MTN Nigeria Plc made the list.
The consumer goods, banking, oil and gas and the Afrinvest bank value index saw no changes.
In the insurance index, Veritas Kapital Assurance Plc and Continental Reinsurance Plc were removed as the companies delisted (or were in the process of delisting) while Cornerstone Insurance Plc and Sunu Assurances Plc were added.
The industrial index saw the exit of Notore Chemicals Industries Plc and the entry of Premier Paints Plc.
MTN Nigeria was also added to the Lotus Islamic, corporate governance and pension indices.
The NSE said the indices were developed to allow investors to follow market movements and properly manage investment portfolios.
The notice read in part, “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.
“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 five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.”
It added that the sectoral indices comprised the top 15 most capitalised and liquid companies in the insurance and consumer goods sectors; the top ten 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.
According to the NSE, it collaborated with issuers like Lotus Capital, Meristem Securities and Afrinvest to publish co-branded indices.