NGX Unveils Equity-Based Commodity Index to Track Key Market Sectors
The Nigerian Exchange (NGX) has introduced the Equity-Based Commodity Index, a new market commodity index designed to track the performance of companies primarily engaged in sectors such as energy, agriculture, mining, metals, and natural resources. The index will serve as a valuable tool for investors interested in these key industries.
The index’s starting constituents include major companies such as 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.
In addition to launching this new index, the Nigerian Exchange Limited (NGX) also shared updates on the changes taking place within its existing indices. For the NGX 30 Index, which tracks the largest and most liquid companies on the exchange, the incoming constituents are Conoil Plc, International Breweries Plc, Oando Plc, and Transcorp Power Plc, while Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc, and Flour Mills Nigeria Plc will exit the index.
In the NGX Consumer Goods Index, Golden Guinea Breweries Plc will join, while Flour Mills Nigeria Plc exits. Meanwhile, the NGX Banking Index will include Wema Bank Plc, with Sterling Holding Company Plc being removed.
The NGX Insurance Index will see Guinea Insurance Plc and International Energy Insurance Plc added, while LASACO Assurance Plc and Mutual Benefits Assurance Plc will be removed.
There are no changes in the NGX Industrial Index. However, the NGX Oil & Gas Index will welcome Aradel Holdings Plc, MRS Plc, and Oando Plc, with Japaul Oil and Services exiting.
The NGX Pension Index will also see Aradel Holdings Plc and Transcorp Power Plc included, while Flour Mills Nigeria Plc and Cadbury Nigeria Plc will exit. In the NGX Lotus Islamic Index, Aradel Holdings Plc will be the sole new addition, replacing Dangote Sugar Refinery Plc.
The Corporate Governance Index remains unchanged, with no new additions or removals. Similarly, in the NGX Pension Broad Index, Aradel Holdings Plc joins, while Flour Mills Nigeria Plc exits.
The Afrinvest Bank Value Index will remain unaffected by the rebalancing, with no changes to its constituents. However, the Afrinvest Div Yield Index will add Red Star Express Plc, with FCMB Group Plc and Dangote Cement Plc exiting.
In the Meristem Growth Index, FCMB Group Plc will join, while Access Bank Plc and Zenith Bank Plc will exit. Finally, the Meristem Value Index will see Access Bank Plc, Dangote Sugar Refinery Plc, and Zenith Bank Plc as new additions, with AIICO Insurance Plc, Nigerian Breweries Plc, FCMB Group Plc, and Flour Mills Nigeria Plc exiting.
Jude Chiemeka, the Chief Executive Officer of NGX, emphasized that the Exchange is committed to advancing its goal of becoming the leading securities exchange. By introducing new products like the Equity-Based Commodity Index, NGX aims to deepen the market and enhance liquidity, while further connecting Nigeria to the global economy.
Abimbola Babalola, the Head of Trading & Products at NGX, highlighted that the Exchange’s indices are managed and rebalanced semi-annually, allowing investors to track market movements effectively and optimize their investment strategies.
