Wema Bank Plc has been included in crucial index of Nigeria’s 30 largest and most active companies, underlining the growing importance of the oldest indigenous bank as one of the most influential companies denoting the direction of the Nigerian economy.
The Nigerian Exchange (NGX) yesterday published the results of its full-year market index review for the stock market indices. The major highlight of the review, which is done twice a year, was the inclusion of Wema Bank and BUA Foods as part of the NGX 30 Index.
The NGX 30 Index is a weighted benchmark that tracks pricing and activity trends among Nigeria’s 30 largest quoted companies. It has considerable influence over the overall market position and the national economy as the 30 biggest companies account for more than two-thirds of Nigeria’s stock market capitalisation.
Also, Airtel Africa and BUA Foods were included in the NGX Pension Index, which tracks stocks that meet the stringent investment guidelines for pension funds. CAP was added to the NGX Lotus Islamic Index, which tracks ethical stocks that comply with Islamic finance rules.
MRS Oil and Gas was also included in the NGX Oil and Gas Index, which underlined the important role of the company in the sector.
On the other hand, Oando and Union Bank of Nigeria were delisted from the NGX 30 Index; Honeywell Flour Mills and Conoil were removed from the pension index, the trio of Nigerian Aviation Handling Company (NAHCO), NASCON Allied Industries and Presco were removed from the Islamic ethical index, Oando was removed from oil and gas index while African Alliance Insurance was dropped from the insurance sector index.
Importantly, Berger Paints was added to the NGX Corporate Governance Index, which broadly measures companies with highest level of best practices and compliances.
The NGX noted that the stock market indices were developed to allow investors to follow market movements and properly manage investment portfolios.
The NGX 30 Index has a primary place among the group and sectoral indices. The NGX began publishing the NGX 30 Index in February 2009 with index values available from January 1, 2007.
On July 1, 2008, the NGX developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors. The sectoral indices comprise the top 15 most capitalised and liquid companies in the insurance and consumer goods sectors; the top 10 most capitalised and liquid companies in the banking and industrial goods sector; and the top seven most capitalised and liquid companies in the oil and gas sector.
In July 2012, the NGX launched the NGX Lotus Islamic Index (NGX LII) which consists of companies whose business practices are in conformity with Shari’ah investment principles, with the aim of increasing the breadth of the market and creating an important benchmark for investments as the alternative ethical and noninterest investment space widened.
The companies that appear on the Islamic index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognized Shari’ah Advisory Board comprising of renowned Islamic scholars.
Wema Bank had at the weekend announced the retirement of Mr Ademola Adebise with effect from March 31 2023 and the appointment of Mr Moruf Oseni, current deputy managing director, as the new managing director. Also, Mr. Wole Akinleye, currently executive director in charge of corporate banking and south west banking, was appointed as deputy managing director while Tunde Mabawonku, chief finance officer and divisional head of finance and corporate services was also appointed as executive director.
Shareholders have been unanimous in their support for the leadership succession at Wema Bank with the active retail shareholders expressing optimism that the appointment of Oseni will lead to improved performance in the years ahead.
Chairman, Ibadan Zone Shareholders Association (IBZA), Mr. Eric Akinduro said the succession was indicative of good corporate governance at the bank as the seamless transition will enable the bank to build on its growth momentum.