NGX Unveils New Index To Track Equity-based Commodity Stocks

Nigerian Exchange Limited has launched the Equity-based Commodity Index to track the performance of companies operating in the energy, agriculture, mining, metals, and natural resources sectors.

The starting constituents of the index include Geregu Power Plc, Multiverse Mining and Exploration Plc, Okomu Oil Palm Plc, Presco Plc, Seplat Energy Plc, Transcorp Power Plc, and Aradel Holdings Plc. The initial value of the NGX Equity-Based Commodity Index is set at 1,000.

The NGX made this known in its Full-Year Review of Market Indices.

According to the report, in addition to launching the new index, the NGX also provided updates on the changes in its incoming and existing indices.

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 January 2, 2025. Designed using the market capitalization methodology, the indices are rebalanced semi-annually on the first business day in January and July respectively.

In the NGX 30 Index, which tracks the largest and most liquid companies, Conoil, International Breweries, Oando and Transcorp Power are the incoming constituents. However, Guinness Nigeria, Sterling Holding Company, Total Nigeria, and Flour Mills Nigeria exited the index.

The NGX Consumer Goods Index witnessed the coming in of Golden Guinea Breweries, while Flour Mills Nigeria left the index. For the NGX Banking Index, Wema Bank has been included, while Sterling Holding Company has been removed.

On the NGX Insurance Index, Guinea Insurance and International Energy Insurance joined the index. Conversely, LASACO Assurance and Mutual Benefits Assurance were removed. In the NGX Oil & Gas Index, Aradel Holdings, MRS Oil Nigeria, and Oando are the new additions, while Japaul Oil and Services left.

The NGX Pension Index will see Aradel Holdings and Transcorp Power included, while Flour Mills Nigeria and Cadbury Nigeria being removed.

In the NGX Lotus Islamic Index, Aradel Holdings is the sole incoming constituent, while Dangote Sugar Refinery exited. In the NGX Pension Broad Index, Aradel Holdings joined.

The chief executive officer of NGX, Jude Chiemeka, reiterated that the Exchange continues to blaze the path to becoming Africa’s foremost Securities Exchange with innovation and product developments that deepen the market and boost liquidity, thus connecting Nigeria, Africa, and the world.

Also, head, Trading & Products, Abimbola Babalola emphasised that NGX indices are developed, managed, and rebalanced semi-annually to allow investors to track market movements efficiently and manage their investment portfolios properly.