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NGX Announces Sweeping Mid-Year Rebalancing of Market Indices

Strategic Insights

— 1 min read

The Nigerian Exchange Limited (NGX) has announced a comprehensive rebalancing of its market indices, designed to better reflect the evolving landscape of the Nigerian capital market. This mid-year review, conducted bi-annually to ensure the indices remain accurate barometers of market performance, has introduced changes to various indices, including the prestigious NGX 30 Index. The changes aim to maintain a transparent, investable, and globally competitive marketplace.

Key Takeaways:

  • The NGX 30 Index, Nigeria's stock market blue-chip index, has been revised to include Aradel Holdings and Wema Bank, replacing Conoil and Julius Berger Nigeria, effective July 1, 2025.
  • The review spanned multiple indices, including thematic, sectoral, and strategy-based benchmarks, covering NGX 30, NGX Lotus Islamic, NGX Pension, NGX Pension Broad Index, Corporate Governance Index, Afrinvest Bank Value Index, and others.
  • Sector-specific indices, such as NGX Consumer Goods, NGX Insurance, NGX Industrial, NGX Banking, NGX Oil and Gas, and NGX Insurance, witnessed significant changes, with new entrants and exits based on criteria such as capital adequacy, underwriting capacity, and market capitalization.
  • Analysts see the changes as part of the broader industrial sector's efforts to diversify production, manage costs, and boost investor confidence amid Nigeria's drive for industrial self-reliance.
  • Strategy-based indices popular with institutional investors, such as the Afrinvest Dividend Yield Index and the Meristem Growth Index, saw notable turnover, with companies with robust dividend policies and strong growth prospects being added or removed.
  • A total of 17 indices were reviewed, with 12 undergoing changes, while 5 remained unchanged.

Statistics:

  • The NGX 30 Index saw 2 new additions (Aradel Holdings and Wema Bank) and 2 original constituents removed (Conoil and Julius Berger Nigeria) in the mid-year review.
  • A total of 17 indices were reviewed, with 12 undergoing changes and 5 remaining unchanged.
  • The review covered indices such as NGX 30, NGX Lotus Islamic, NGX Pension, NGX Pension Broad Index, Corporate Governance Index, Afrinvest Bank Value Index, and others.
  • Sector-specific indices such as NGX Consumer Goods, NGX Insurance, NGX Industrial, NGX Banking, NGX Oil and Gas, and NGX Insurance witnessed significant changes.
  • The NGX Industrial Index saw changes driven by the industrial sector's efforts to diversify production, manage costs, and boost investor confidence.

Sources:

  • The Nigerian Exchange Limited (NGX)
  • Nigerian Stock Exchange. (2025). NGX Announces Sweeping Mid-Year Rebalancing of Market Indices.

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