Page 31 - 2017-2018 NSE FACTBOOK.cdr

2017/2018 NSE FACT BOOK 2017/2018 NSE FACT BOOK
The Performance Documentary of Listed Nigerian Companies The Performance Documentary of Listed Nigerian Companies

(B4) NSE Oil & Gas-7 Index 2. Each sector weight is capped at 40% Factor (IWF) is determined. Where IWF = Available float ac ons, offse ng index divisor adjustments are ordinarily
Below is The NSE Oil & Gas-7 Index methodology: 3. Each component stock is capped at 30% shares) divided by total shares outstanding. Available made. By adjus ng the index divisor for the changes in the
4. The index is rescreened, rebalanced and reviewed bi- float shares are defined as total shares outstanding less aggregate free-float adjusted market capitaliza on of the
1. The segment is Oil and Gas. annually on the first business day in January and in July. shares held by control holders. Composite arising from one or more corporate ac ons
2. The number of stocks is fixed at 7. It started with 5 5. Companies owned by a group should not control more It is a Total Return Index so that it can accurately affec ng component stocks, the value of the index remains
companies but was increased to 15 companies on than 40% of the total market capitaliza on in order to measure equity por olio performances, which capture constant. This helps keep the value of the index accurate as
January 1, 2013 manage key man and concentra on risks returns from dividends, price changes and realized gain a barometer of stock market performance and ensures that
3. The eligible equity universe is the top 7 most liquid Total Return Index values will only be available end of the movement of the index will not be improperly affected
companies in the NSE Oil & Gas. The stocks to be (B7) NSE ASEM Index day. There will be no intra-day values by corporate ac ons in the component stocks.
included aside from having a high market capitaliza on The NSE ASEM Index is an All-share index of companies The index is rebalanced semi-annually in June and
must trade at least 70 per cent of the number of mes listed in the Alterna ve Securi es Market of the Exchange. December (with effect from June 2018) Any corporate ac on, whether it requires divisor
the stock market is opened for business during the The Index was introduced on April 23, 2013 with index The index is reviewed annually on the first business day adjustments or not, will be implemented a er the close of
preceding half year. values available as far back as January 2011. in January whereby cons tuents are changed (added or trading on the day prior to the ex-date of such corporate
4. No company can have a weigh ng of more than 50% deleted) based on their market capitaliza on, liquidity ac ons. There are already guidelines on the
5. The index is reviewed and rebalanced on a semi-annual in the previous twelve months and Free Float Factor. announcement of corporate ac ons prior to their
basis, on the first business day in January and in July. (B8) NSE Pension Index implementa on date.
The NSE pension index was created in line with the Adjusted Market Capitaliza on Weighted Methodology
(B5) NSE Industrial Goods - 10 Index requirements of the Pension industry as specified in the for Calcula ng NSE Pension Index: Index Divisor Adjustments
The NSE Industrial Goods Index is an index of the largest ten Pension Reform Act 2014 and regula on on Investment of The daily index value is calculated by dividing the Current Corporate ac ons affect the share capital of component
(10) companies by capitaliza on listed on the Industrial Pension Fund Assets as prepared by the Na onal Pension Market Value (closing price x Number of listed shares x stocks and therefore trigger increases or decreases in the
Goods sector. The Index was introduced on April 4, 2013 Commission. Capping factor) of all cons tuent companies by a Base index. To avoid distor on, the divisor of the index is
with index values available as far back as January 2011. market Value. adjusted accordingly. Changes in the index's market
The NSE Pension Index includes the top 40 companies in capitaliza on due to changes in composi on, weigh ng, or
1. The number of stocks is fixed at 10. terms of market capitalisa on and liquidity. It is a Total Calcula ng the Base market value as at the base date one corporate ac ons result in a divisor change to maintain the
2. The eligible equity universe is the top 10 most liquid Return index and is weighted by adjusted market would divide the current market value of all cons tuent index's con nuity. By adjus ng the divisor, the index value
companies in the NSE Industrial Goods sector. The capitaliza on. Adjusted market capitaliza on of a listed companies by itself and mul ply by 1000. retains its con nuity before and a er the event. Corporate
stocks to be included aside from having a high market company is the number of its listed shares, mul plied by ac ons that require divisor adjustments will be
capitaliza on must trade at least 70 per cent of the the closing price of that company, mul plied by a capping The NSE Pension Index is calculated using the formula implemented prior to the opening of trading on the
number of mes the stock market is opened for factor. The index is also adjusted for Free Float Factor. below: effec ve date.
business during the preceding half year.
3. No company can have a weigh ng of more than 50% Calcula on and methodology of the NSE Index Current Market Value X 1000 No divisor adjustments are necessary for stock splits, since
4. The index is reviewed and rebalanced on a semi-annual Given the size of the Pension Fund assets under Base Market Value market capitaliza on does not change and the share
basis, on the first business day in January and in July. management of PFAs (N4.5trillion as at 30th June 2014), it number and share price are adjusted prior to the opening
is impera ve that only companies with significant market of trading on the split's ex-date.
(B6) NSE Lotus Islamic Index -15 Index capitaliza on should qualify for inclusion in the index. The Or CMV
The NSE-Lotus Islamic Index (NSE LII) tracks the NSE Pension 40 Index is a modified market capitaliza on ---------- X 1000 Re-Balancing/Re-Weigh ng
performance of 15 Shari'ah compliant equi es which have index based on the following selec on criteria: BMV The NSE Pension Index cons tuents like all other indices
met the eligibility requirements of a renowned Shari'ah are reviewed, re-balanced, re-weighted and changed semi-
Advisory Board. The component stocks are rigorously The number of stocks is fixed at 40. Index Maintenance annually on the 1st of July and 2nd of January whereby
screened and reviewed bi-annually to ensure their The Stocks are picked based on their market Index maintenance includes monitoring and implemen ng cons tuents are changed (added or deleted) based on their
con nuous compliance for inclusion. The index is based on capitaliza on from the most liquid sectors. the adjustments for company addi ons and dele ons, market capitaliza on, liquidity in the previous review
the market capitaliza on methodology. In line with the Pension Reform guideline, no individual share changes, stock splits, stock dividends, corporate period and Free Float Factor.
listed equity can have a weigh ng of more than 4.5% restructurings, spin-offs, or other corporate ac ons. Some
The index was developed in conjunc on with Lotus Capital, Also, no sector can have a weigh ng of more than 45%. corporate ac ons, such as stock splits and stock dividends, (B9) NSE PREMIUM Index
a full service, ethical investment management bou que No sector can have a weighing less than 2% require simple changes in the common shares outstanding The premium index is a price index that tracks the premium
specializing in Shari'ah compliant financial services. Rules Companies to be included must have an opera ng track and the stock prices of the component companies in the board companies in terms of market capitalisa on and
guiding equi es selec on are: record of having made taxable profits for at least three Composite. Other corporate ac ons, such as share liquidity. These companies are leaders in their respec ve
out of the five years preceding the investment issuances, change the aggregate free-float adjusted market sectors, and adhere to the highest standards of corporate
1. Cons tuents stocks are ranked based on the highest Companies must have paid dividend/bonus at least capitaliza on of the Composite and, therefore, require an governance as well as other stringent parameters and
market capitaliza on and average daily volume traded twice in the last five years index divisor adjustment as well. must:
over a six month period with minimum average volume Companies to be included must have Free Float Factor To avoid index discon nuity due to adjus ng for corporate · Be listed on the Premium Board
2017/2018 NSE FACTBOOK 2017/2018 NSE FACTBOOK
· Submit itself for evalua on under the Corporate
of at least 5%. For each stock an Investable Weight
of 100,000 shares

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