By InvestAdvocate

Lagos (INVESTADVOCATE)- The Nigerian Stock Exchange Friday said it has reviewed its Market Indices for year 2013 to allow for adequate Portfolio diversification.

This is contained in a Statement by Wole Tokede, Head, Media Relations of the Nigeria’s Exchange and made available to InvestAdvocate in Lagos Nigeria.

“As a prelude to the year-end review of The NSE 30 Index and other Sectorial Indices, the Index Committee of The Nigerian Stock Exchange has undertaken a pseudo-review of the indices and released the names of the likely incoming and exiting equities. Barring unforeseen circumstances, the composition of the indices will become effective on Wednesday January 2, 2013” the Statement said.

According to the NSE, the pseudo review of NSE 30 and Sectorial indices which is done twice yearly in June and December is a run-up to the actual review to be undertaken at respective month ends.

In the indices review, the Committee recommended that the number of stocks comprising the NSE Consumer Goods Index be increased from 10 to 15; NSE Insurance Index be increased from 10 to 15 while the NSE Oil/Gas Index will have 7 stocks as compared to the current 5.

However, The NSE 30 and the NSE Banking Indices retain their 30 stocks and 10 stocks respectively.

A breakdown of the likely composition of the indices shows that the NSE 30 Index may have GlaxoSmithkline Consumer Plc; Union Bank of Nigeria Plc; International Breweries Plc; Julius Berger Nigeria Plc; 7-UP Bottling Co. Plc and Sterling Bank Plc as likely incoming stocks while Law Union & Rock Ins. Plc; Transnational Corporation of Nig. Plc; National Salt Co. of Nig. Plc; OandoPlc; Dangote Flour Mills Plc and Mobil Oil Nigeria Plc are listed as likely exiting stocks.

“Under the NSE Consumer Goods Index, the following stocks are listed as likely incoming: International Breweries Plc; National salt; Honeywell Flour Mills Plc; VitafoamPlc; UTC Plc; Multi-Trex Integrated Foods Plc and Northern Nig. Flour Mills Plc while 7-Up Bottling Plc; Cadbury Nigeria Plc; Dangote Flour Mills; Unilever Nigeria; PZ Cussons Nigeria Plc; Dangote Sugar Refinery Plc and Flour Mills of Nigeria Plc are listed as likely exiting” the Statement affirmed.

The NSE Banking Index has Union Bank; Diamond Bank; Sterling Bank Plc; Unity Bank Plc and Wema Bank Plc as likely incoming while FBNH; Stanbic Holdco; Fidelity Bank Plc; First City Monument Bank Plc and Skye BankPlc are listed as likely exiting.

Niger Insurance Plc; Cornerstone Insurance Plc; Standard Alliance Ins. Plc; Lasaco Assurance Plc; Sovereign Trust Insurance Plc; Linkage Assurance Plc and Prestige Assurance Plc are in the stocks listed as likely incoming stocks for The Insurance Index while Unity Kapital Assurance Plc;

Mutual Benefits Assurance Plc.; Goldlink Insurance Plc; Aiico Insurance Plc; Wapic Insurance Plc; Continental Reinsurance Plc and Mutual Benefits Assurance Plc are listed as likely exiting stocks.

The NSE Oil/Gas Index has MRS Oil Nigeria Plc; Japaul Oil & Maritime Services Plc; EternaPlc; Beco Petroleum Products Plc listed as likely incoming stocks while Forte OilPlc; ConoilPlc; Mobil Nigeria and OandoPlc are listed as likely exiting stocks.

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 sectorial indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The sectorial indices comprise of the top most capitalized and liquid companies in the sector.