Wema Bank Plc and Custodian Investment Plc were dropped from the NGX 30 as a result of the 2022 market index review.
The NGX released a statement on the findings of its half-year market index review for the NGX 30, NGX Lotus Islamic, NGX Pension, Corporate Governance Index, Afrinvest Bank Value Index, Afrinvest Dividend Yield Index, Meristem Growth Index, Meristem Value Index, and the five Sectoral Indices of The Exchange – NGX Banking, NGX Insurance, NGX Industrial, NGX Consumer Goods, and NGX Oil & Gas.
The top 30 firms by market capitalization and the total value of stocks listed on the NGX are tracked by the NGX-30 index.
Following the review, several businesses were added to and removed from a number of indices, which became effective on Monday, July 3, 2023, at the start of trading.
According to the report, Custodian Investment Plc and Wema Bank Plc have been replaced in the NGX 30 Index by Geregu Power Plc and Sterling Financial Holding Plc.
According to NGX, the indices were created to give investors the ability to follow market trends and effectively manage their investment portfolios. The indices, which are created using the market capitalization approach, are rebalanced twice a year on the first business day of January and July.
The NGX 30 Index was first published by the Nigerian exchange in February 2009, with index values starting to be available on January 1, 2007.
The NGX created five sectoral indices on July 1, 2008, each with a base value of 1,000 points and intended to serve as investable benchmarks for measuring the performance of particular industries.
The top fifteen most liquid and capitalized companies in the insurance and consumer goods sectors, the top ten most liquid and capitalized firms in the banking and industrial goods sectors, and the top seven most liquid and capitalized firms in the oil and gas sector make up the sectoral indices.
The NGX Lotus Islamic Index, which includes businesses whose business practices adhere to Shari’ah Investment Principles, was introduced by the Nigerian Stock Exchange in July 2012 in an effort to broaden the market and establish a significant benchmark for investments as the space for alternative ethical and non-interest investments grew.
