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Profiles - January 2, 2019

NSE Excludes Diamond Bank, Two Others From Corporate Governance Index

The Nigerian Stock Exchange has removed Diamond Bank Plc, Continental Reinsurance Plc and NEM Insurance Plc from its Corporate Governance Index.

The NSE, in a statement on Monday, said the composition of the indices is effective January 1, 2019, after 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.

It said the Index Governance Committee of the Exchange resolved to remove NEM Insurance following the suspension of the Corporate Governance Rating System rating of the company by the steering board of the CGRS on November 19, 2018.

The statement read in part, “Additionally, in view of the recent governance issues with Diamond Bank, the Index Committee has decided to remove the bank from the NSE CG Index.

“The committee also decided to remove Continental Reinsurance from the NSE CG Index following the company’s application to the Exchange to delist from the daily official list of the Exchange.”

According to the statement, the CG Index, which was launched on February 22, 2018, tracks the performance of CGRS-rated companies using their market capitalisation, free float and corporate governance rating scores.

It said the index was expected to be an important tool for investors keen on investing in well-governed companies as well as corporates eager to distinguish themselves on the ground of governance.

The NSE also announced the review of the NSE-30 and the eight sectoral indices ― NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Industrial, NSE Oil & Gas, NSE Pension, NSE Lotus Islamic and NSE Corporate Governance Indices.

Under the NSE Insurance Index, Continental Reinsurance Plc, Staco Insurance Plc and Standard Alliance Insurance Plc would be removed, while Consolidated Hallmark Insurance Plc, Sovereign Trust Insurance Plc and Regency Assurance Plc would be added.

The NSE said, “The indices, which were developed using the market capitalisation methodology, are rebalanced on a biannual basis, the first business day in January and in July.

READ ALSO: BREAKING – Diamond, Access Banks Merge (OFFICIAL STATEMENT)

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