BUA Foods, Wema Bank Join NGX 30 Index

BUA Foods Plc and Wema Bank Plc have joined the most capitalised stocks index on the Nigerian Exchange (NGX) Limited.

The NGX announced the results of its full-year market index review for the following indices;  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 review has led to the entry and exit of some companies from several indices that took effect at the opening of the market on January 3, 2023.

BUA Foods and Wema Bank were added to the NGX 30 Index, while Oando and Union Bank were removed.

Also, NGX Oil & Gas index saw the entrance of MRS Oil Nigeria Plc, while NGX Pension index has Airtel Africa and BUA Foods coming in. NGX Lotus Islamic index welcomed CAP Plc, while Nigerian Aviation Handling Company (NAHCO), NASCON Allied Industries and Presco Plc exited.

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NGX stated that, “the indices were developed to allow investors track market movements and properly manage investment portfolios. Designed using the market capitalisation methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.”

According to the Exchange, the Nigerian bourse began publishing the NGX 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NGX developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.

“The sectoral indices comprise the top 15 most capitalised and liquid companies in the Insurance and Consumer Goods sectors; the top ten most capitalised and liquid companies in the Banking and Industrial Goods sector; and the top seven most capitalised and liquid companies in the Oil & Gas sector.

“In July 2012, the Nigerian bourse launched the NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices are in conformity with Shari’ah Investment Principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened.

“The companies that appear on the Islamic Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognised Shari’ah Advisory Board comprising of renowned Islamic scholars,” it pointed out.