Skye Bank, Jaiz Bank May Replace Wema, Diamond On NSE Banking Index

ADEBISI ADEMOLA.

Skye Bank and Jaiz Bank Plc are likely to be the new additions to the Banking Index from July 1, 2018 according to the Nigerian Stock Exchange (NSE).

The two are to replace the duo of Wema and Diamond Bank that are likely to exit on same date.

The Exchange is expected to review the NSE 30, and the six sectoral indices comprising NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and NSE Lotus Islamic Indices.

“The composition of these indices after the review will be effective on July 1, 2018. With the review, we will witness the entry/re-entry as well as exit of some major companies,” the bourse explained in its composition of market indices .

Likely exiting the NSE 30 Index include Diamond Bank Plc, Julius Berger Nig Plc, Forte Oil Plc, Dangote Flour Mills Plc and Transcorp Plc. The likely incoming stocks to the NSE 30 are FCMB Group Plc, Oando Plc, Beta Glass Co. Plc, UACN Plc and Sterling Bank Plc.

The Nigerian bourse began publication of its 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.

In July 2012, the Nigerian bourse launched The NSE Lotus Islamic index (NSE LII) consisting 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 non-interest 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 recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.

The price indices, which were developed using the market capitalization methodology, are reviewed and rebalanced on a bi-annual basis – on the first business day in January and in July.