BUA Foods Plc and Wema Bank Plc have joined the list of most liquid stocks in the Nigerian Exchange Limited (NGX) leading to their inclusion in the NGX-30 index.
The NGX-30 index tracks the top 30 companies in terms of total value of equities listed on the NGX (market capitalization) and liquidity.
This is even as Union Bank of Nigeria and Oando Plc have exited the index.
The NGX revealed this in its Full Year Review of Market Indices.
MRS Oil was included in the oil & gas index, while Oando Plc was also removed. While there was no incoming company in the insurance sector, African Alliance Insurance Plc was removed.
Union Bank, Oando Exit NGX-30 Index, As Wema Bank, BUA Foods Join
In the NGX Pension index, the NGX added Airtel Africa Plc and BUA Foods, while Honeywell Plc and Conoil Plc were removed.
In the NGX Lotus Islamic index, NAHCo Plc, NASCON Allied Industries Plc and Presco Plc exited, while Chemical and Allied Product (CAP) Plc joined the league.
Berger Paints Plc was included in the NGX Corporate Governance Index, while no company was removed.
Meanwhile, the consumer goods, banking and the industrial goods sectors remained unchanged.
The indices, according to the NGX, were developed to allow investors track market movements and properly manage investment portfolios. 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 NGX 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NGX developed five sectoral indices 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 fifteen 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 & gas sector.
Source: Vanguard Newspaper