NGX Rejigs Key Market Indices: Conoil, Julius Berger Out; Wema Bank, Aradel Holdings In
In a strategic realignment reflecting market dynamics and investor sentiment, the Nigerian Exchange Limited (NGX) has announced significant adjustments to its flagship NGX 30 Index and several others, following the half-year (H1) index review.
Effective July 1, 2025, Conoil Plc and Julius Berger Nigeria Plc have been delisted from the NGX 30 Index — a key benchmark comprising the top 30 most capitalised and liquid equities on the Exchange. Taking their place are Aradel Holdings and Wema Bank Plc, two companies that have seen increased investor attention and market activity in recent months.
This review, conducted semi-annually in January and July, is based on market capitalisation and liquidity criteria, and forms a core part of NGX’s broader effort to ensure market indices reflect current realities and support investment decisions.
Beyond the Big 30: Broader Shifts Across NGX Indices
The shake-up wasn’t limited to the NGX 30 alone. Updates were also made across multiple sectoral and thematic indices, further signaling the shifting tides of Nigeria’s capital market.
Consumer Goods Index
- Entry: McNicholas Consolidated
- Exit: Golden Guinea Breweries
Insurance Index
- Entry: Lasaco Assurance
- Exits: Fortis Global Insurance, International Energy Insurance
Industrial Index
- Entry: Austin Laz & Company
- Exit: Notore Chemical Industries
Afrinvest Dividend Yield Index
- Entries: Access Holdings, FCMB Group, Julius Berger Nigeria
Meristem Growth Index
- Entries: Wema Bank, Chemical and Allied Products (CAP), Guaranty Trust Holding Company (GTCO)
- Exits: Fidelity Bank, Transnational Corporation (Transcorp), United Bank for Africa (UBA), Unilever Nigeria, Guinness Nigeria
Meristem Value Index
- Exits: Julius Berger Nigeria
- Entries: UBA, Unilever Nigeria, Guinness Nigeria
Interestingly, no changes were reported in some key indices such as the NGX Banking, Oil & Gas, Pension, Lotus Islamic, Corporate Governance, NGX Pension Broad, and Afrinvest Bank Value indices, indicating stability in those segments.
Strategic Rebalancing to Boost Investor Confidence
Commenting on the development, Mr. Jude Chiemeka, Chief Executive Officer of NGX, emphasized that the rebalancing reflects the Exchange’s commitment to creating a world-class marketplace driven by innovation and data-driven transparency.
“This re-indexation reinforces our vision to be Africa’s leading exchange hub by ensuring our indices remain responsive to market realities and serve as credible benchmarks for performance tracking,” Chiemeka said.
Abimbola Babalola, Head of Trading and Products at NGX, noted that the indices are carefully structured to enable investors and fund managers to track performance, manage risk, and allocate assets effectively.
BRANDECONOMY Analysis: What This Means for Investors
- New Entrants like Aradel Holdings and Wema Bank could attract increased investor interest and passive fund inflows, especially from index-tracking instruments.
- Exiting Firms, such as Conoil and Julius Berger (from the NGX 30), may experience reduced visibility and trading volumes in the short term, barring counterbalancing corporate developments.
- Market Signals: The inclusion of more diversified and mid-tier players across indices suggests a gradual market shift towards growth-oriented, agile companies, a trend consistent with global equity market behaviour.
As Nigeria’s equities market continues to evolve amid economic headwinds and policy realignments, index composition changes such as this offer a window into the evolving confidence landscape of institutional and retail investors alike.
