Nigerian Stock Exchange Reviews Composition Of Market Indices

The Nigerian bourse began publishing the NSE 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NSE developed four sectoral indices with a base  value  of  1,000  points,  designed  to  provide  investable  benchmarks  to  capture  the performance of specific sectors. The sectoral indices comprise the top fifteen most capitalized and liquid companies in the Insurance and Consumer Goods sectors, top ten most capitalized and liquid companies in the Banking and Industrial Goods sector and the top seven most capitalized and liquid companies in the Oil & Gas sector.

In July 2012, the Nigerian bourse launched The NSE Lotus Islamic index (NSE LII) which consists of companies whose business practices are in conformity with Shari’ah investment principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened. The companies that  appear  on  the  Islamic  Index  have  been  thoroughly  screened  by  Lotus  Capital  Halal Investment, in accordance with a methodology approved by an internationally recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.

The price indices, which were developed using the market capitalization methodology, are reviewed and rebalanced on a bi-annual basis - on the first business day in January and in July.