Wema Bank and Custodian Investment have been removed from the NGX 30 Index following the outcome of the 2022 market index review conducted by the Nigerian Exchange Limited (NGX). The review resulted in the entry and exit of several companies from various indices, with the changes taking effect on July 3, 2023.
The NGX 30 Index tracks the top 30 companies based on their market capitalization and the total value of equities listed on the NGX. The half-year market index review led to Geregu Power and Sterling Financial Holding replacing Custodian Investment and Wema Bank in the NGX 30 Index.
The NGX develops indices that allow investors to track market movements and effectively manage their investment portfolios. These indices, including the NGX 30, are rebalanced on a semi-annual basis in January and July, using the market capitalization methodology.
The Nigerian bourse introduced the NGX 30 Index in 2009, providing index values from January 1, 2007. In 2008, five sectoral indices were developed, each with a base value of 1,000 points. These sectoral indices capture the performance of specific sectors in the Nigerian market, including Insurance, Consumer Goods, Banking, Industrial Goods, and Oil & Gas.
In 2012, the NGX launched The NGX Lotus Islamic Index (NGX LII), which includes companies whose business practices align with Shari’ah Investment Principles. This index serves as an important benchmark for ethical and non-interest investments.
The companies listed on the Islamic Index undergo thorough screening by Lotus Capital Halal Investment, following a methodology approved by an internationally recognized Shari’ah Advisory Board comprising renowned Islamic scholars.
The removal of Wema Bank and Custodian Investment from the NGX 30 Index reflects the changes in market capitalization and the overall performance of these companies. Investors can utilize the NGX indices to make informed decisions and monitor the market trends.
The NGX continues to enhance its offerings to meet the needs of investors and provide a reliable platform for trading and investing in the Nigerian market. With the regular review of indices, the NGX ensures that the indices accurately reflect the market dynamics and assist investors in achieving their financial goals.
In conclusion, Wema Bank and Custodian Investment have been removed from the NGX 30 Index as part of the outcome of the 2022 market index review conducted by the Nigerian Exchange Limited. The changes aim to ensure that the NGX indices accurately reflect the market performance and assist investors in managing their investment portfolios effectively.
