Business

Sterling, Diamond, others may exit high cap stocks

Published

9 years ago

June 18, 2016

Olu Emmanuel

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By Chioma Obinagwam

Sterling bank, Diamond bank, Fidelity bank may soon be exiting the league of 30 highly capitalised stocks on the Nigerian Stock Exchange known as (NSE) 30 index.
This is contained in a statement issued by the NSE, recently.

Other stocks that may be leaving the group include Transnational Corporation of Nigeria (Transcorp) and Glaxo Smithkline Consumer.

On the other hand, Cadbury Nigeria, FCMB Group and UACN are among the companies that will likely be included in the list.

Presco and Transcorp hotels are also among the companies that may be joining the group.

On the NSE Consumer Goods Index side, Vitafoam Nigeria, Tiger Branded Consumer Goods, Honeywell Flour Mills and NASCON Allied Industries may leave the group.
Northern Nigeria Flour Mills, DN Tyre and Rubber, Union Dicon as well as Premier Breweries are expected to join the group.

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More so, the NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and the NSE Lotus Islamic Indices are other index that are expected to witness some changes.
The NSE noted that the list of the actual incoming and outgoing companies will be announced on June 24, 2016. “The composition of these indices after the review will be effective on July 1, 2016. With the review, we will witness the entry/re-entry as well as exit of some major companies,” the NSE said.

Recall that the Nigerian bourse began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007.

On July 1, 2008, the NSE developed four 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 fifteen most capitalized and liquid companies in the Insurance and Consumer Goods sectors, top ten most capitalized and liquid companies in the Banking and Industrial Goods sector and the top seven most capitalized and liquid companies in the Oil & Gas sector.