After three years of establishment, the seven listed companies constituting the Nigerian Stock Exchange (NSE) Premium Board Index raised activities on the platform with a 48.53 per cent gain.
The index comprises of Access Baord, United Bank for Africa (UBA), Zenith Bank, FBN Holdings, Dangote Cement, Lafarge Africa (Wapco) and Seplat Petroleum Development Company.
Premium Board is the listing segment for the elite group of issuers that meet the exchange’s most stringent corporate governance and listing standards and features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity.
The NSE Premium Board index had a three-year return of 48.53 per cent, as it moved from 1,664.64 basis points as at August 25, 2015 to 2,472.51 as at September 7, 2018.
The platform, therefore, outperformed the NSE-All Share Index (ASI), which returned 13.92 per cent over the same period.
The NSE Premium Board Index has only declined by 3.57 per cent, outperforming the NSE-ASI, which recorded a loss of 11 per cent as at September 7, 2018.
The premium board gives a company access to a global pool of investors, who are focused on companies managed in conformity to the highest standards in their target markets.
Speaking on the performance of the board, the Chief Executive Officer of NSE, Oscar Onyema, stated that “companies on the board are well-run corporates with sound governance, which is part of the requisite qualification for listing on the platform.
“These stocks which currently have strong visibility on the Exchange will further appeal to investors, seeking to invest in companies with the highest standards of corporate governance.”
