Nigeria: NGX Unveils Equity-Based Commodity Index to Enhance Market Tracking

The Nigerian Exchange Limited (NGX) has launched an innovative Equity-Based Commodity Index aimed at tracking the performance of companies operating within key sectors, including energy, agriculture, mining, metals, and natural resources. This milestone aligns with NGX’s strategy to deepen the market and enhance investment opportunities.

The index debuts with a base value of 1,000 and features notable 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.

In tandem with the new index, NGX has made substantial updates to its existing indices to reflect market dynamics:

• NGX 30 Index: Conoil Plc, International Breweries Plc, Oando Plc, and Transcorp Power Plc have been added, replacing Guinness Nigeria Plc, Sterling Holding Company Plc, Total Nigeria Plc, and Flour Mills Nigeria Plc.
• NGX Consumer Goods Index: Golden Guinea Breweries Plc joins, while Flour Mills Nigeria Plc exits.
• NGX Banking Index: Wema Bank Plc replaces Sterling Holding Company Plc.
• NGX Insurance Index: Guinea Insurance Plc and International Energy Insurance Plc are new additions, while LASACO Assurance Plc and Mutual Benefits Assurance Plc exit.
• NGX Oil & Gas Index: Aradel Holdings Plc, MRS Plc, and Oando Plc have been included, with Japaul Oil and Services exiting.
• NGX Pension Index: Aradel Holdings Plc and Transcorp Power Plc replace Flour Mills Nigeria Plc and Cadbury Nigeria Plc.
• NGX Lotus Islamic Index: Aradel Holdings Plc joins, replacing Dangote Sugar Refinery Plc.

Other index adjustments include:

• Afrinvest Div Yield Index: Red Star Express Plc joins, while FCMB Group Plc and Dangote Cement Plc exit.
• Meristem Growth Index: FCMB Group Plc has been added, replacing Access Bank Plc and Zenith Bank Plc.
• Meristem Value Index: Access Bank Plc, Dangote Sugar Refinery Plc, and Zenith Bank Plc join, replacing AIICO Insurance Plc, Nigerian Breweries Plc, FCMB Group Plc, and Flour Mills Nigeria Plc.

Highlighting these advancements, Jude Chiemeka, CEO of NGX, stated, “The Exchange remains committed to introducing products that deepen the market, enhance liquidity, and connect Nigeria to the global economy.”

Abimbola Babalola, Head of Trading & Products at NGX, emphasized the importance of the semi-annual rebalancing of indices, saying, “This approach allows investors to track market trends effectively and optimize their investment strategies.”

These updates underscore NGX’s dedication to providing tools that facilitate informed investment decisions, strengthen market transparency, and position Nigeria’s capital market for sustainable growth.