- Investors Lose N311bn, NSE Reviews Market Indices
The equities segment of the Nigerian Stock Exchange pared some of its recent gains on Wednesday, with investors losing N311bn in value on the back of losses by 37 firms led by PZ Cussons Plc.
The NSE All-Share Index fell by 2.61 per cent to close at 33,477.89 basis points, while the market capitalisation of listed equities dropped to N11.576tn from N11.887tn on Tuesday.
PZ Cussons and Skye Bank Plc saw their share prices decline by five per cent each to close at N20.90 and N0.76, respectively.
Cadbury Nigeria Plc shed 4.98 per cent to close at N13.54 per share, while Ecobank Transnational Incorporated and Oando Plc dropped by 4.97 per cent each to close at N14.53 and N7.27 per share, respectively.
The share prices of FBN Holdings Plc and Fidson Healthcare Plc dipped by 4.95 and 4.78 per cent respectively to close at N6.34 and N2.99.
Thirteen stocks recorded price increase on Wednesday, with Neimeth International Pharmaceuticals Plc leading the park.
Neimeth International Pharmaceuticals rose to 9.09 per cent to N0.84 per share, while Conoil Plc gained 4.99 per cent to close at N40.42 per share.
Cement Company of Northern Nigeria, Vitafoam Nigeria Plc and Honeywell Flour Mills Plc appreciated by 4.93 per cent, 4.8 per cent and 4.79 per cent, respectively, to close at N11.27, N2.84 and N1.97 per share.
A total of 508.732 million shares worth N6.396bn in 5,876 deals were traded by investors on the floor of the Exchange on Wednesday.
Meanwhile, the NSE, on Wednesday, announced the expected review of the NSE 30, and the bourse’s six sectoral indices, namely, NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas and the NSE Lotus Islamic Indices.
The indices are normally reviewed bi-annually (June and December) except for NSE Pension index that is reviewed once in the year (December).
“With the review, we will witness the entry/re-entry as well as exit of some major companies. The composition of these indices after the review will be effective on July 1, 2017,” the NSE said.
According to a statement, the NSE-30 and NSE Industrial Indices are modified market capitalisation index with the numbers of included stocks fixed at 30 and 10, respectively, with the stocks selected based on their market capitalisation from the most liquid sectors.
The liquidity is based on the number of times the stock is traded during the preceding two quarters, and the stock must have traded for at least 70 per cent of the number of times the market opened for business in order to be included,
“The Exchange is aware that the number of the stocks included in some of the indices may not be practically suitable for optimal portfolio diversification; however, the numbers would be reviewed as sector conditions change,” it said.
