NGX Unveils Equity-based Commodity Index

The Nigerian Exchange Limited (NGX) has unveiled an Equity-Based Commodity Index aimed at tracking the performance of companies operating in energy, agriculture, mining, metals, and natural resources sectors.

This new index, debuting with an initial value of 1,000, includes key players 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.

In addition to this introduction, NGX announced significant updates across its existing indices. The NGX 30 Index, which tracks the largest and most liquid companies, will now feature Conoil Plc, International Breweries Plc, Oando Plc, and Transcorp Power Plc, replacing Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc, and Flour Mills Nigeria Plc. Meanwhile, the NGX Consumer Goods Index will welcome Golden Guinea Breweries Plc, with Flour Mills Nigeria Plc exiting.

For the NGX Banking Index, Wema Bank Plc will join, replacing Sterling Holding Company Plc. The NGX Insurance Index will see the addition of Guinea Insurance Plc and International Energy Insurance Plc, while LASACO Assurance Plc and Mutual Benefits Assurance Plc exit. The NGX Industrial Index remains unchanged, but the NGX Oil & Gas Index will add Aradel Holdings Plc, MRS Plc, and Oando Plc, with Japaul Oil and Services exiting.

Further changes include the NGX Pension Index, where Aradel Holdings Plc and Transcorp Power Plc will replace Flour Mills Nigeria Plc and Cadbury Nigeria Plc. In the NGX Lotus Islamic Index, Aradel Holdings Plc will be added, replacing Dangote Sugar Refinery Plc. The Corporate Governance Index and Afrinvest Bank Value Index remain unchanged.

Additional updates show Red Star Express Plc joining the Afrinvest Div Yield Index, while FCMB Group Plc and Dangote Cement Plc exit. In the Meristem Growth Index, FCMB Group Plc will be added, with Access Bank Plc and Zenith Bank Plc exiting. Conversely, the Meristem Value Index will welcome Access Bank Plc, Dangote Sugar Refinery Plc, and Zenith Bank Plc, replacing AIICO Insurance Plc, Nigerian Breweries Plc, FCMB Group Plc, and Flour Mills Nigeria Plc.

Speaking on these developments, Mr. Jude Chiemeka, the Chief Executive Officer of NGX, emphasised that the exchange remains committed to enhancing market depth and liquidity, while positioning Nigeria as a significant player in the global economy.

Mr. Abimbola Babalola, the Head of Trading & Products at NGX, highlighted the importance of the semi-annual rebalancing, noting that it ensures the indices accurately reflect market performance, enabling investors to make informed decisions and optimise their strategies.