The Nigerian Stock Exchange (NSE) at the weekend announced a review of its NSE-30, and its seven sectoral indices, following the completion of the year-end review and index rebalancing exercise which will see the entry of some major companies and the exit of others from the various indices.
Most affected in the review were Oando Plc and 7-Up Bottling Company, which have been removed from all of the NSE’s blue-chip and sectoral indices namely: NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension and the NSE Lotus Islamic Indices, with effect from January 1, 2018.
Daily Trust could not ascertain whether their removal is related to the recent developments in both companies.
Oando Plc is scheduled for forensic audit ordered by the Securities and Exchange Commission (SEC) by a team to be led by Akintola Williams Deloitte; 7-Up Bottling Company, on the other hand is on the verge of being delisted from the NSE, following which the majority shareholder- Affelka B.V. has made a memorandum offer.
Both are being replaced by Dangote Flour Mills Plc, which has recently turned positive, following the reacquisition of majority stake by Dangote Industries Limited core-investor from South Africa’s Tiger Brands Limited.
Others are: NASCON Allied Industries Plc, another member of the Dangote Group; and Diamond Bank; replacing Oando Plc, which is currently scheduled for forensic audit ordered by the Securities and Exchange Commission (SEC) by a team to be led by Akintola Williams Deloitte; 7-Up Bottling Company, which is on the verge of being delisted from the NSE; as well as UACN Plc.
Seven-Up Bottling Company is also exiting the NSE Consumer Goods Index, giving way for Northern Nigerian Flour Mills; while there would be no changes to the NSE banking and Industrial Indexes.
