>>>>launches corporate governance index
The management of the Nigerian Stock Exchange (NSE) has approved the migration of leading commercial banks-United Bank for Africa (UBA) Plc and Access Bank Plc to the Exchange’s premium board. The migration of the two banks will increase the number of companies on the top-rated board to six.
According to the self regulator’s report at the weekend revealed that the NSE had approved the migration of the two top financial institutions from the main board to the premium board, which was designed as a market for the most capitalised stocks with the best corporate governance and liquidity.
Amehnews recall that the premium board was meant to showcase Nigeria’s best stocks to the global market.
Approval for the migration of UBA, Access Bank along the Lafarge Africa Plc earlier to the premium board wills; therefore, bring the total number of the companies listed on Premium Board to six. There are currently three companies listed on the NSE’s premium board including Dangote Cement, FBN Holdings and Zenith Bank International.
In the same vein, the Nigerian Stock Exchange (NSE) has launched a Corporate Governance Index (CG Index), which will track the performance of prequalified companies, using their market capitalisation, free float and corporate governance rating scores.
According to the management, the CG Index will be reviewed on a bi-annual basis at which point other companies that have met the requirements may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed. The Index is 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.
Chief Executive of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, in a statement said the new index will increase transparency in the capital market and provide investors additional data points to make well-informed investment decisions.
“The launch of the CG Index is an important milestone to strengthening listed companies by tracking their corporate governance practices