In its review of the indexes, the Nigerian Exchange Limited added FBN Holdings, Guaranty Trust Holding Company Plc, FCMB Group, and Stanbic IBTC Holdings Plc, to the Banking Index.
In a notice from the Exchange, the equities of Jaiz Bank, Unity Bank, Wema Bank and delisted Union Bank of Nigeria are exiting the Banking Index.
Index rebalancing is the process of adjusting the composition of a market index, ensuring its relevance. Rebalancing can cause significant shifts in trading volumes, affecting stock prices, sector trends, and broader market sentiment.
The NGX’s indices are rebalanced on a semi-annual basis on the first business day in January and in July respectively.
“Nigerian Exchange Limited has announced the results of its half-year market index review for the following indices – NGX 30; NGX Lotus Islamic; NGX Pension; NGX Pension Broad Index; 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 review has led to the entry and exit of some companies from several indices which took effect at the opening of the market on Tuesday, 2 January 2024. Below are the incoming and exiting companies in the various indices,”the notice stated.
For the Insurance index, Universal Insurance Plc joined the index while International Energy Insurance Plc exited. The Pension index will be boosted by the addition of Transcorp Hotels Plc, Fidson Healthcare Plc, Nigerian Aviation Handling Company Plc and Conoil while PZ Cussons Nigeria Plc, Nascon Allied Industries Plc and Unilever Nigeria Plc are expected to exit.
NGX Lotus Islamic Index will witness the exit of Nestle Nigeria Plc. The Pension Broad Index will welcome Geregu Power Plc and say goodbye to Glaxo Smithkline Consumer Nigeria Plc.
The likes of MTN Nigeria, Vitafoam, Stanbic IBTC Holdings and NPF microfinance bank plc will be added to the AfrinvestDiv Yield Index while Dangote Sugar Refinery, FCMB Group, GSK and Cutix will exit the index.
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