The Nigerian Stock Exchange (NSE) Premium Board Index is set to consolidate its lead on the Nigerian bourse following the migration of Access Bank Plc, Lafarge Africa Plc, Seplat Petroleum Development Company Plc and United Bank for Africa Plc.
As at the close trading last Friday, the NSE Premium Board Index has recorded the highest gain among the 13 indices on the exchange. The index has recorded a growth of 14.4 per cent followed by the NSE Pension Index, which has posted a growth of 13.5 per cent. The NSE All-Share Index, which is the benchmark gauge for the market has appreciated by 7.5 per cent.
However, the NSE Premium Board Index is likely to consolidate on the lead due to the migration of the four companies to the board on Monday. The four companies have added N1.491 trillion to market capitalisation of the board. Considering the fact that the index is weighted by adjusted market capitalisationâ€”the number of a companyâ€™s listed shares, multiplied by the closing price of that company, multiplied by a capping factor, it is expected that the new listings would further boost its performance.
The board is the listing segment for the elite group of issuers that meet the NSEâ€™s most stringent corporate governance and listing standards. It is a platform for showcasing companies who are industry leaders in their sectors and also gives a company access to a global pool of investors who are focused on companies managed in conformity to the highest standards in their target markets.
Access Bank Plc, Lafarge Africa, Seplat and UBA have now joined Dangote Cement Plc, FBN Holdings Plc, and Zenith Bank Plc who were migrated to the Premium Board in 2015, bringing the total number of companies on the board to seven.
Commenting on the migration, the Chief Executive Officer, NSE, Mr. Oscar Onyema, said: â€œThis migration affirms the strides our listed companies are making towards meeting the highest standards of corporate governance and underpins the robustness of our market. The new companies have consistently demonstrated their inherent values to be globally competitive brands and we congratulate them on the attainment of this migration.â€
In his comments, the Group Managing Director of Access Bank, Mr. Herbert Wigwe said: said: â€œAccess Bank is pleased to have attained this status. We have always adhered to international corporate governance best practices, which is line with our aspiration to become Africaâ€™s gateway to the World.â€
Also, the Chairman of UBA Plc, Tony Elumelu said: â€œThe migration of UBA shares to the premium board is a deserving recognition of the size, liquidity and sound corporate governance of the group. I congratulate the management and staff of UBA group on this positive recognition.â€
The Group Managing Director/CEO, UBA Plc, Kennedy Uzoka also commented: â€œThe migration of UBA shares to the premium board is well deserved. It is instructive to bring back memories of our pioneer Initial Public Offer (IPO) in the Nigerian banking sector, following our listing on the NSE in 1970. Since then, we have remained committed to the development of the NSE and the broader capital market, through our equity and debt listings as well as strategic partnerships with the leaderships of the Nigerian capital market.â€