Sterling Bank replaces Beta Glass on key index
By Peter Egwuatu
THE Nigerian Stock Exchange (NSE), in a stock basket rebalancing measure, has reviewed its NSE 30 Index and eight sectoral indices, stating that the composition of the indices is effective January 1, 2019.
The indices are: NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension, NSE Lotus Islamic and NSE Corporate Governance Indices.
According to NSE, the index rebalancing exercise which will see the entry of some major companies and the exit of others from the various indices.
In a statement yesterday the NSE said: “A review of the composition of Indices shows that: for NSE 30 Index, Sterling Bank Plc was selected to join the Index, while Beta Glass Company Plc was selected to exit.
“For NSE Consumer Goods Index, no company is expected to join or exit. For NSE Banking Index, Jaiz Bank Plc was selected to join while Diamond Bank Plc has been selected to exit. For NSE Insurance Index, Consolidated Hallmark Insurance Plc, Sovereign Trust Insurance Plc and Regency Assurance Plc are selected to join, while Continental Reinsurance Plc, Staco Insurance Plc, Standard Alliance Insurance Plc have been selected to exit.
“For NSE Industrial Index, No change for both joining and exiting. For NSE Oil/Gas Index, MRS Oil Nig Plc has been selected to join the Index, while Eterna Plc is selected to exit. For NSE Pension Index CCNN Plc, Beta Glass Co. Plc, Julius Berger Plc are selected to join the Index, while Diamond Bank Plc, Continental Reinsurance Plc, and Ecobank International Incorporated have been selected to exit. For Lotus Islamic Index, Jaiz Bank Plc have been selected to join the Index, while, Nigeria Aviation Handling Company Plc was selected to exit.
“For Corporate Governance Index, no company was selected to join the Index, while NEM Insurance Plc, Diamond Bank Plc, and Continental Reinsurance Plc were selected to exit the Index.”
The Indices, which were developed using the market capitalization methodology, are rebalanced on a biannual basis, the first business day in January and in July. The stocks are selected based on market capitalization and liquidity. The liquidity is based on the number of days the stock is traded during the preceding two quarters.
According to NSE, to be included in the Index, the stock must have traded for at least 70 percent of the number of trading days in the preceding two quarters.