Thursday, May 13, 2021

Sterling Bank Joins NSE-30 Index

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Naija247news, Nigeria
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

The Nigerian Stock Exchange (NSE) has announced the review of nine of its market indices, including the NSE 30, that witnessed the entry of Sterling Bank into the index.

The reviews took effect on January 1, 2019, and witness the entry of some major companies and exit of others. The NSE 2018 Year End Index Review showed that the NSE-30 index has exited Beta Glass Plc from the NSE 30, to be replaced by Sterling Bank Plc.

The other sectoral indices that have been reviewed are NSE Banking, NSE Insurance, NSE Industrial, NSE Consumer Goods, NSE Oil & Gas,NSE Pension, NSE Lotus Islamic, and NSE Corporate Governance Indices. Diamond Bank Plc would be exiting the NSE Banking Index, to be replaced by Jaiz Bank Plc. Diamond Bank is also among the three companies that would be exiting the NSE Pension Index; alongside Continental Reinsurance Plc, and Ecobank International Incorporated. The three would be replaced by Cement Company of Northern Nigeria (CCNN), Beta Glass and Julius Berger.

Capital market analysts said that Diamond Bank’s departure from the above NSE sectoral indices was not much of a surprise, seeing as the merger between the tier-2 lender and Access Bank Plc was almost finalised. Also, Eterna Plc would be exiting the NSE Oil/Gas Index, to be replaced by MRS Oil Nigeria. In the same vein, Continental Reinsurance, Staco Insurance and Standard Alliance Insurance would exit the NSE Insurance Index.

They would be replaced by Consolidated Hallmark Insurance, Sovereign Trust Insurance and Regency Assurance. The indices, according to NSE, were developed using the market capitalisation methodology, and are rebalanced on a biannual basis, the first business day in January and in July.

It stated that the stocks were selected based on market capitalisation and liquidity. The liquidity is based on the number of days the stock is traded during the preceding two quarters. To be included in the index, the stock must have traded for at least 70 per cent of the number of trading days in the preceding two quarters.

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