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The Nigerian Stock Exchange (NSE) has review of 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.
These indices are normally reviewed bi-annually (June and December) except for NSE Pension index that is reviewed once in the year (December).
The review process will see the entry of some major companies and the exit of others from the various indices.
Following the latest review for last December, three new stocks came into the NSE 30 Index and three exited. Okomu Oil Palm Plc, Presco Plc and Conoil Plc came while Diamond Bank Plc, Sterling Bank Plc and Fidelity Bank Plc exited. There were no changes in the NSE Consumer Goods and NSE Banking, NSE Industrial, and NSE Oil/Gas indices.
The NSE Insurance Index saw the entry of Prestige Assurance Plc, Sovereign Trust Insurance Plc and Unity Kapital Insurance Plc, just as Equity Assurance Plc, Linkage Assurance Plc and Universal Assurance Plc exited.
Ecobank Transnational Incorporated, Dangote Flour Mills Plc, United Capital Plc joined NSE Pension Index, while Beta Glass Company Plc, International Breweries Plc and Skye Bank Plc left. Forte Oil Plc entered the NSE Lotus Islamic Index, while Lafarge Africa Plc exited.
The NSE-30 and NSE Industrial Indices are modified market capitalization 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 capitalized and liquid companies in the Insurance and Consumer Goods sectors, top 10 most capitalized and liquid companies in the Banking and Industrial Goods sector and the top seven most capitalized and liquid companies in the Oil & Gas sector.
