NSE Premium Board Index Has Returned 85% YTD, Says Onyema

Photo Caption: From left to right- Ms. Tinuade Awe, Executive Director, Regulation Division, The Nigerian Stock Exchange (NSE); Michel Puchercos, Group Managing Director/CEO, Lafarge Africa Plc; Mobolaji Oludamilola Balogun, Chairman, Lafarge Africa Plc; Mrs. Mosun Belo-Olusoga, Chairperson, Access Bank Plc; Herbert Wigwe, Group Managing Director/CEO, Access Bank Plc; Oscar Onyema, Chief Executive, NSE; Tony Elumelu, Chairman, United Bank for Africa; Kennedy Uzoka, GMD, UBA; Austin Avuru, CEO, Seplat Petroleum Plc and A.B.C. Orjiako, the company’s Chairman; during the presentation of certificates to the companies migrated to NSE Premium Board at The Exchange on Monday, April, 16, 2018.

Chief executive of the Nigerian Stock Exchange (NSE), on Monday said companies listed on its premium board have yielded a robust 84.99% capital appreciation between the end of last December and April 11, 2018.
Speaking at the migration of Access Bank, Lafarge Africa, Seplat Petroleum Development Company and the United Bank for Africa to the Premium Board on Monday in Lagos, Onyema said, is juicier than the 41.79% returned by the composite All-Share index for the period.
This, he noted is because companies on the board are renown for the highest standards of corporate governance, for which they already enjoy the highest levels of visibility and appeal to investors looking for large companies.
According to him, the performance is not happenstance, given that “the Premium Board’s performance continues to reinforce the sentiments of both foreign and domestic investors on the importance of corporate governance and sustainability.”
Migration of the companies onto the premium board, Onyema added, “affirms the strides our listed companies are making towards meeting the highest standards of corporate governance and underpins the robustness of our market. The new companies have consistently demonstrated their inherent values to be globally competitive brands and we congratulate them on the attainment of this migration.”
A statement by the NSE explained also that the companies being migrated onto the elite premium board had applied to and are meeting the Exchange’s listing requirements for such.
The companies, the NSE said met its most stringent corporate governance and listing standards, stressing that the Premium Board is a platform for showcasing companies that are industry leaders in their sectors. It also features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalization and liquidity.
“The 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,” the statement added, stressing that the new migrants have all passed the Corporate Governance Rating System (CGRS).
The companies which have market capitalization of over N340bn each, much more than the minimum N200bn set, and are joining Dangote Cement Plc, FBN Holdings Plc, and Zenith Bank Plc, which were migrated to the Premium Board in 2015.
The prospective companies must also attain a minimum score of 70% on the CGRS, and maintain a minimum free float of 20% of their issued share capital or a free float value equal to or above N40bn on the date of listing, as well as meet other standard listing criteria.
The migration brings the number of companies on the Premium Board to seven.
The NSE Premium Board and the associated index were launched on Tuesday,
August 25, 2015.