Presco Plc, quoted in the agricultural sector of the Nigerian Stock Exchange (NSE) has been admitted into the NSE 30 index.
The development, which is based on the NSE bi-annual review, became operational, January 3, 2017. Also included in the index are Okomu Oil palm Plc and Conoil Plc.
In the Insurance Sector, Prestige Assurance Plc, Sovereign Trust Insurance Plc, Unity Kapital Assurance were included while Equity Assurance, Linkage Assurance and Universal Basic Assurance were exited.
In a related development, United Capital Plc, Ecobank Transnational Inc and Dangote Flourmill Plc were brought in while Beta Glass Co. Plc, International Breweries Plc and Skye Bank Plc were removed.
Meanwhile, NSE has removed Diamond Bank Plc, Fidelity Bank Plc and Sterling Bank Plc from the NSE 30 index.
To qualify for inclusion, a stock must have traded for at least 70 percent of the number of times the market opened for business.
NSE in a statement issued by Head, Corporate Communications, Olumide Orojimi and Media Relations Officer, Joseph Kadiri on tueasday said the Exchange is pleased to announce the review of the NSE-30, and the seven sectoral indices of the Exchange.
Explaining further, NSE said: “These Indices are NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension and the NSE Lotus Islamic Indices. These indices are normally reviewed bi-annually (June and December) except for NSE Pension index that is reviewed once in the year (December).
“The review process will see the entry of some major companies and the exit of others from the various indices. The Index review will become operational on January 3, 2017. There were 123 Trading Days during the review period of June 24, 2016 and December 23, 2016.
“The NSE-30 and NSE Industrial Indices are modified market capitalization index with the numbers of included stocks fixed at 30 and 10, respectively. The Stocks are selected based on their market capitalization
“From the most liquid sectors. The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must have traded for at least 70 percent of the number of times the market opened for business.
“The Exchange is aware that the number of the stocks included in some of the indices may not be practically suitable for optimal portfolio diversification. However, the numbers would be reviewed as sector conditions change.
“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 and developed the NSE Pension Index in 2013, 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 capitalized and liquid companies in the Insurance and Consumer Goods sectors, top 10 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.
“The indices, which were developed using the market capitalization methodology, are rebalanced on a biannual basis -on the first business day in January and in July.