The Nigerian Exchange Limited has announced the outcome of its full-year 2025 market index review, reflecting changes in market performance across listed companies.

According to information published by the Exchange, the reviewed indices became effective at the start of trading on Friday, January 2, 2025.

The review revealed that Guinness Nigeria Plc, Presco Plc, and Wema Bank Plc were added to key indices, signalling improved market positions and stronger performance over the year.

These new inclusions led to the removal of companies such as United Capital Plc, Access Corp, International Breweries, and Stanbic IBTC, among others, as part of the Exchange’s periodic index rebalancing exercise.

The reshuffle underscores evolving trends in market capitalisation, liquidity levels, and sector dynamics within Nigeria’s capital market.

Overall, the index changes reflect shifts in market capitalisation, liquidity, regulatory compliance, and sector performance, with implications for both passive and active investment strategies in the Nigerian capital markets.

In the flagship NGX 30 Index, which tracks the 30 most capitalised and most liquid equities on the Exchange, Guinness Nigeria Plc was added, replacing United Capital Plc.

The development suggests increased investor interest, enhanced liquidity, or growth in Guinness Nigeria’s market value during the review period, with the company also emerging as the best-performing consumer goods stock in 2025.

United Capital’s removal from the NGX 30 does not necessarily imply a weakening of its fundamentals, but rather reflects a relative decline in its ranking based on the index’s selection criteria during the review period.

Changes among sector-specific indices were relatively limited.

In the NGX Insurance Index, Mutual Benefits Assurance was added, replacing Guinea Insurance.

In the NGX Oil and Gas Index, Japaul Gold and Ventures Plc replaced MRS Oil Nigeria.

No changes were recorded in the Banking, Consumer Goods, and Industrial Goods Indices, indicating relative stability in leadership across those sectors.

More significant adjustments were observed across thematic and compliance-based indices.

Under the NGX Pension Index, which comprises stocks eligible under Nigeria’s pension investment guidelines, Wema Bank Plc was admitted, while International Breweries was removed, reflecting shifts in free float, liquidity, and compliance requirements.

Presco Plc was added to the NGX Lotus Islamic Index, which tracks Shariah-compliant equities, reinforcing continued investor interest in agriculture-linked and export-oriented companies.

Further reshuffling occurred across thematic and partner indices.

In the NGX Pension Broad Index, the Nigeria Infrastructure Debt Fund was added, while Regency Alliance and Veritas Kapital were removed.

The Afrinvest Bank Value Index recorded additions including Wema Bank, Jaiz Bank, Access Holdings, and Stanbic IBTC, pointing to renewed momentum among both tier-one and mid-tier banking stocks.

The Afrinvest Dividend Yield Index added Dangote Cement, Okomu Oil, Vitafoam, and Conoil, highlighting sustained investor preference for dividend-paying stocks amid a high interest rate environment.

Under the Meristem Growth Index, BUA Cement, Lafarge Africa, AXA Mansard, AIICO, CAP, Conoil, and United Capital were added, reflecting strong earnings growth momentum among the selected companies.

The Meristem Value Index welcomed ETI, Julius Berger, and NEM Insurance, while Dangote Sugar, TotalEnergies, and Lafarge Africa were removed.

NGX index reviews extend beyond routine adjustments, as they play a significant role in shaping investor decisions, fund allocation, and stock visibility within the market.

Passive investment products and institutional portfolios often mirror these indices, resulting in potential inflows into newly included stocks and outflows from those that are removed.

The Chief Executive Officer of NGX, Jude Chiemeka, stated that the index review aligns with the Exchange’s objective of deepening market liquidity and strengthening investor confidence through continuous product innovation.

Similarly, the Head of Trading and Products, Abimbola Babalola, explained that the rebalancing process ensures efficient market tracking and proper portfolio alignment.

The Nigerian Exchange Limited reviews and updates the composition of its major stock market indices annually to ensure continued relevance.

As part of the process, the Exchange evaluates companies based on criteria such as market size, share price, trading activity, liquidity, and the proportion of shares available to the public.

Companies that fail to meet these requirements are removed, while those demonstrating stronger performance or growth potential are admitted.

This approach helps ensure that each index accurately represents current market realities and highlights the most investable companies.

For investors, the reshuffle is significant because funds that track these indices may buy shares of newly added companies and sell those that have been removed, potentially influencing share price movements.

For both active and passive investors, the changes serve as useful indicators of which stocks are gaining prominence and which are gradually losing relevance in Nigeria’s equity market.