At least 10 Nigerian companies from different sectors have qualified for inclusion in the FTSE Russell frontier index series.
Some of the firms, disclosed in the FTSE Russell’s September
2026 review of the index series published on Wednesday, are GTCO, Zenith Bank,
and Dangote Cement.
The other Nigerian stocks are Aradel Holdings, First HoldCo,
MTN Nigeria Communications, Nestlé Nigeria, Nigerian Breweries, Presco, and
Stanbic IBTC Holdings.
In the publication, FTSE classified the 10 Nigerian stocks
as “newly eligible” large-cap constituents of the frontier index series.
‘Newly eligible’ means stocks cleared for index inclusion
following a country or exchange reclassification.
The inclusion comes ahead of Nigeria’s reclassification from
“unclassified” to “frontier market” status, which takes effect from the opening
of trading on September 21 — when the listed Nigerian companies will be active.
FTSE Russell first announced the reclassification in April
but subsequently placed the decision under additional assessment following
Nigeria’s transition from a T+2 to T+1 settlement cycle on June 1.
The index had expressed concerns that the shorter settlement
period could create a de facto prefunding requirement for international
institutional investors.
Following engagements with Nigerian market authorities and
international investors, FTSE Russell announced that the country’s upgrade
would proceed as planned, saying no material settlement, operational, or
funding issues had been observed since the implementation of T+1.
The FTSE frontier index series provides benchmarks for
large-, mid- and small-cap companies across eligible frontier markets and
serves as a benchmark for investors and a basis for index-tracking products.
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