2016 NSE INDEX NEW COMERS

The final list of quoted companies removed and replaced with new ones was released in the wee days of 2015 by the Nigerian stock exchange while many were busy with preparations for the yuletide.
This means that variations you may notice in the affected indices from this week could be partially because the weight distribution in the valuation basket has been affected, even if slightly.
This is because the out and in companies have different market capitalisation and are priced fairly differently too. Also brokers perception of them differ and also different is their fortunes.
However, attempts must have been made to ensure distortions due to the annual review of basket composition is minimal. Indeed, the intention is to make each sectoral index more reflective of market realities.
According to the Nigerian stock exchange no changes were made in the baskets of the consumer goods index; banking index; industrial index and oil and gas index even though such was in view during the review exercise.
In the NSE 30 Fidelity bank, Total Nigeria and Glaxo SmithKline replaced UACN, FCMB and Cadbury Nigeria.
In the insurance index basket, Law Union & Rock and Staco insurance replaced Sovereign Trust and Prestige Assurance.
It is in the basket of the pensions index that seven changes were made. In were Cadbury Nigeria, Glaxo SmithKline, Julius Berger, Seplat Petroleum, Beta Glass, Dangote Sugar and 7up Bottling.
Out were Wema bank, Union Bank, Honeywell, UACN Property; Ecobank, and UACN.

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