VENTURES AFRICA – Mobil Oil Plc alongside Cadbury Nigeria Plc, Law Union and Rock Insurance Plc and National Salt Company of Nigeria Plc have attained Nigeria Stock Exchange’s NSE-30 Index. This was announced in a statement containing the result of the Stock Exchange’s biannual review.
According to the statement, the review covered the NSE-30 and the four Sectoral Indices which are the NSE Banking, the NSE Consumer Goods, the NSE Oil and Gas, and the NSE Insurance.
The entrant of Mobil and others was as a result of the inability of International Breweries, Champion Breweries, GlaxoSmithkline Consumer (Nig) Plc and Julius Berger Nigeria Plc to stay on the NSE-30 Index.
In the NSE Insurance index, Law Union and Rock Insurance Plc and Wapic Insurance Plc are the new entrants in the NSE Insurance Index, while Niger Insurance Plc and Universal Insurance Plc were dropped.
Furthermore, Forte Oil Plc displaced MRS Oil Nigeria Plc from the NSE Oil/Gas Index; but there was no change in the NSE Consumer Goods Index.
Describing the rationale behind NSE 30, the index committee said “The NSE 30 is a modified market capitalization index based on the following methodology: The number of stocks is fixed at 30; the stocks are picked based on their liquidity, that is, the average daily value of three months is used as liquidity criteria; no sector can have a weighting of more than 40 percent.”
No sector can have a weighting of less than 2 percent and no individual listed equity can have a weighting of more than 20 percent.
The composition of the indices after the review would be effective on Monday July 2, 2012