NGX rebrands market indices

Nigerian Exchange Limited (NGX) has announced the rebranding of all its existing indices by changing the prefix from Nigerian Stock Exchange (NSE) to NGX.

The transition, which is effective Monday, leverages on the new brand identity of the Exchange.

The Head of Corporate Communications at the Exchange, Olumide Orojimi, in a statement said “there are currently 19 indices – either wholly-owned or co-branded – on NGX, servicing the investment management community along the lines of product development, benchmarking.”

The recent demutualisation led to the transformation of The Nigerian Stock Exchange to a non-operating holding company, Nigerian Exchange Group Plc. (NGX Group).

Consequently, The Group now has three wholly-owned operating subsidiaries, namely: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX RegCo), the independent regulation company; and NGX Real Estate Limited (NGX RelCo), the real estate company.

Consequently, the rebranding of the indices is in line with NGX’s drive to standardise and ensure consistent expression of the brand across touchpoints.

The statement partly read, “From today, all indices from Nigerian Exchange Limited will be rebranded with a pre-fix, NGX, to promote brand awareness and recognition. Market players should however note that this exercise will not affect the computation methodology of the indices.

“As NGX continues to provide a platform for investors and issuers to meet their various investment objectives, this rebranding effort is a testament to NGX’s commitment to providing an efficient market that reflects available information.

The rebranded 19 indices are NGX All-Share Index (ASI), NGX-Main Board Index, NGX 30, NGX Pension Index, NGX Banking Index, NGX Premium Index, NGX CG Index, NGX Insurance Index, NGX ASeM Index and NGX-AFR Bank Value Index.

Others are NGX AFR Div Yield Index, NGX MERI Growth Index, NGX MERI Value Index, NGX Consumer Goods Index, NGX Oil/Gas Index, NGX Lotus Islamic Index, NGX Industrial Goods Index, NGX Growth Index and NGX Sovereign Bond Index.

Designed using the market capitalisation methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.

With 78.74% transactions, domestic investors dominate equities market in May

Domestic investors outperformed foreign investors in the equities market transactions, trading 76.90 per cent as against 21.26 per cent traded in May 2021.

In value terms, domestic investors out of the N97.19 billion transaction in May traded N76.90 billion while foreign investors transacted N20.29 billion.

On a monthly basis, Nigerian Exchange Limited (NGX) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.

According to the report, “As at 31 May 2021, total transactions at the nation’s bourse decreased by 39.23per cent from N159.93billion or about $389.84million in April 20215 to N97.19billion or about $236.33million in May 20216.

“The performance of the current month when compared to the performance in May 2020 (N119.15billion) revealed that total transactions decreased by 18.43per cent.

“In May 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58per cent.

“A further analysis of the total transactions executed between the current and prior month (April 2021) revealed that total domestic transactions decreased by 41.70per cent from N131.91billion in April to N76.90billion in May 2021.

“Similarly, total foreign transactions decreased by 27.59per cent from N28.02billion (about $68.31million) to N20.29billion or about $49.33million between April 2021 and May 2021.

“Institutional Investors outperformed Retail Investors by 14per cent. A comparison of domestic transactions in the current and prior month (April 2021) revealed that retail transactions decreased by 9.75per cent from N36.50billion in April 2021 to N32.94billion in May 2021.

“Similarly, the institutional composition of the domestic market decreased by 53.93per cent from N95.41billion in April 2021 to N43.96billion in May 2021.”

The report by NGX stated that over a 14 year period, domestic transactions decreased by 59.54per cent from N3.556trillion in 2007 to N1.439trillion in 2020 whilst foreign transactions increased by 18.45per cent from N616billion to N729billion over the same period.

“Total domestic transactions accounted for about 74per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26per cent of the total transactions in the same period.

“The transaction data for 2021 shows that total foreign transactions stand at circa N198.54billion, whilst total domestic transactions are circa N735.11billion,” the report added.