By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Foremost Nigerian oil marketing firm, Fort Oil Plc and pan- Africa lender Ecobank Transnational Incorporated Plc (ETI) has been included in the Morgan Stanley Capital International (MSCI) frontier market index.
Morgan Stanley, one of world’s leading equity index providers announced last week that Forte Oil and pan-African lender ETI are amongst the thirteen (13) securities included into the MSCI frontier markets index.
However, 30 were deleted from the index, MSCI frontier markets 100 index were dominated by Kuwait (30% from 20%) and Nigeria (20% from 13%), with Pakistan, Oman, Argentina, Kenya and Morocco in the five percent (5%) to seven percent (7%) range (from 3 to 4).
On the deletions, they are almost all coming from the UAE (10 names) and Qatar (13 names).
Analysts say the inclusion of Nigerian stocks into the index meant that investment inflow of over $200 million would be redirected toward the Nigeria investment market, which is great for the country.
Forte Oil achieved 1164.55% share price growth to emerge the best performing and investment stock on the Nigerian bourse in 2013.
The foremost oil marketing firm recorded a year-to-date (YTD) growth of 72.23 percent in share price from N92.87 to N155.95 in 2014. While pan-African bank ETI depreciated YTD by 12.75 percent to N14.30 per share.
In 1968, the Capital International Indices published the first set of global stock market indexes for non-U.S. markets. In 1986, Morgan Stanley licensed the rights to the indexes from Capital International and branded the indexes as the MSCI indexes.
About $8 trillion is benchmarked to MSCI indexes. The emerging markets index MSCIEF is up 2.9 percent so far this year, while the all world index has risen 2.1 percent.
MSCI is a leading provider of investment decision support tools to over 6,000 clients worldwide, ranging from large pension plans to boutique hedge funds.
The Equity Index provider which has presence in 23 countries, offers a range of products and services – including indexes, portfolio risk and performance analytics, and ESG data and research.
