The Nigerian Stock Exchange, NSE Premium board has recorded year-to-date growth of 12.09 per cent, outperforming the NSE All Share index and other sectorial indices on the bourse .
The Premium Board as at August 19, 2016 has a year to date growth of 12.09 per cent, while the All Share index recorded a year-to-date decline of 3.46 per cent
The NSE Premium Board and the associated Premium Board Index were launched on August 25, 2015. The Board features companies that meet the Exchange’s most stringent listing criteria of capitalisation, governance and liquidity.
It provides a platform for increased global visibility for eligible African corporates to make it easier for them to attract global capital flows and reduce the cost of funding.
The Premium Board Index is an equity index designed to provide a benchmark for investors looking to track the performance of large issuers with excellent corporate governance and sustainable business models. It will also provide a basis for developing products such as ETFs and equity index derivatives that are tradable on the bourse
The pioneer issuers that are listed on the Premium Board are Dangote Cement, FBN Holdings and Zenith International Bank Plc with market capitalisation of N3.12 trillion, N112.35 billion and N495.12 billion respectively as at August 22, 2016.
The Board also provides greater investment returns for the discerning investors and portfolio managers.Also, some companies currently quoted on the Main Board of the Exchange are set to be migrated into the board.
A source at the Exchange disclosed to Leadership, on Thursday, August 25 that the Premium Board may witness entry of some companies currently quoted on the Main Board of the Exchange.
The source declined to mention the names of the companies on the ground that the process of the migration is yet to be concluded and the companies which were from the Financial Services, Oil & Gas and Industrial Goods sectors, will be migrated in no distant future subject to final confirmation from Convention on Business Integrity (CBi) and the Exchange.
