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NSE delists 4 troubled banks, 6 others from Index 30

IN apparent bid to reposition and re-balance the NSE 30 index as part of effort to restoring the dwindling investors’ confidence in the stock market, the Nigerian Stock Exchange (NSE), yesterday removed Intercontinental Bank Plc, Bank PHB Plc, Oceanic Bank International Plc and Spring Bank Plc from the list of  top quoted companies.
Other companies removed from the top 30 index include: Pinancle Point Group Plc, Standard Alliance Insurance Plc, Cornerstone Insurance Plc, Intercontinental Wapic Insurance Plc, Tantalizers Plc and Big Treat Plc.

A stock index  revealed the overall trend in the equity market. In other words, how in general the stock market is performing  It is a comprehensive measure of market trends indicating the general stock market price movements.

Thus, the index will be the investor’s yardstick for the level of the whole stock market, or a certain group of stocks, against which the performance of individual stocks can be measured or judged. Indices are worldwide instruments used by investors in developed as well as developing markets.

The management of the NSE at its weekly summary of stock transactions, said “ The Index Committee held its quarterly meeting to review and re-balance The NSE 30 Index and the four sectoral indices.

According to the NSE, the new entrants into the NSE 30 index include: Oando Plc, Honeywell Flour Mills Plc, Total Nigeria Plc, African Petroleum Plc, Diamond Bank Plc, Ecobank Nigeria Plc,

Honeywell Flour Mills Plc, Northern Nigeria Flour Mills Plc, Unity Kapital Assurance Plc, Guaranty Trust Assurance Plc, and African Alliance Plc.

A breakdown shows that Intercontinental Bank Plc, Oceanic Bank International Plc, Bank PHB, and Spring Bank  was removed from The NSE Banking_10 Index ; Tantalizers Plc, Big Treat Plc from The NSE Food, Beverages & Tobacco _ 10 index ; Standard Alliance Insurance Plc, Cornerstone Insurance Plc. Intercontinental WAPIC Insurance Plc from The NSE Insurance _ 10 Index.

The new entrants that replaced the removed equities according to sectorial analysis are :  Oando Plc,  Total Nigeria Plc, and African Petroleum Plc from the Petroleum Marketing sub sector, Honeywell Others are Diamond Bank Plc, Ecobank Nigeria Plc from the Banking sub sector; Honeywell Flour Mills Plc, Northern Nigeria Flour Mills Plc, and Flour Mills Plc from the Beverages sub sector ; Unity Kapital Assurance Plc, Guaranty Trust Assurance Plc, and African Alliance Plc from the Insurance sub sector.

The Exchange started publishing new NSE price 30 Index on January 2007, but the Price Index has
a start date of Decemebrr 29, 2006 and a base value of 1000 points.

The Strategy/Derivatives department, in conjunction with the Research and IT department of the NSE, were responsible for the design of the NSE 30 Index

The Research and IT department, is responsible for the maintenance of the NSE 30 Index.
The NSE 30 Index includes the top 30 companies in terms of market capitalisation and liquidity. The NSE 30 is a price index it measures the returns on investment from the change in market value of the stocks (Capital appreciation/depreciation only).

The NSE 30 index is weighted by adjusted market capitalisation. Adjusted market Capitalisation of a listed company is the number of its listed shares, multiplied by the closing price of that company, multiplied by a capping factor.   File: Stock Exchange – 8 January 2010


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