Indication emerged on Wednesday that Fidelity Bank and Sterling Bank may exit basket of high capitalized stocks on the Nigerian Stock Exchange.
The likely incoming companies are UACN Plc, Presco Plc, Cadbury Nigeria Plc and FCMB Plc. Others are Transcorp Hotels Plc, Northern Nigeria Flour Mills and DN Tyre and Ruber Plc.
The Exchange in a statement announced the expected review of the NSE 30, and the six sectoral indices of the Exchange, which are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil and Gas and the NSE Lotus Islamic Indices.
It explained that the composition of these indices after the review will be effective on July 1, 2016.
The NSE 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 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 capitalized and liquid companies in the Insurance and Consumer Goods sectors, top ten 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.
In July 2012, the NSE launched Lotus Islamic index (NSE LII) which consists of companies whose business practices are in conformity with Shari’ah investment principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened.
The companies that appear on the Islamic Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.
The price indices, which were developed using the market capitalization methodology, are reviewed and rebalanced on a bi-annual basis – on the first business day in January and in July.