The Nigerian Stock Exchange, NSE’s all-share index was created in the month of January3, 1984; 29 years ago and still today, most people, including journalists rely on the All-share index for their reports, without private barometer (signal), like the Dow 30 and S&P500 do in USA and FTSE 100 in United Kingdom respectively.
I was told that in NSE’s operations, nobody, including operators and journalists, attempted to construct one index, before or during.
My immediate chief concern on the issue was, the Alternative Private Index to operate along All-share index. This gave birth to The Ameh105 stock index on October 20, 2006 with 105 companies listed on the NSE. The second intent is to be using only the respectable and few stocks in the index, even though in the same computation methods with All-share index, but different purpose and objective.
My primary objective for creating the index was to provide an investable instrument and a benchmark to capture the overall performance of the Nigerian stock market which institutional investors did not see in the All-share index as true value or lack liquidity due to stale value. This lack of transparency liquidity in the area of derivative products development, contributed to low patronage from foreign investors.
Every Stock Exchange needs four broad categories (Debt instruments, Preferences shares, Ordinary shares, and Derivatives) of capital market instruments. The development of capital markets requires not just establishing the right legal and regulatory framework, but associated with the building of an enterprising and flourishing private sector tradable instruments like The Ameh105 stock index to serve as financial infrastructures in the operations that Deeping the market.
The said index always contains 105 shares of stock of 105 companies with update on weekly basis for now, without notice of meetings and communiqué after the meetings by the index chairman.
Therefore, Ameh105, The Nigeria titan premier private equity index last figure change stood at 2.35 basis points which represents 1.21percent growth to close at 195.65 on Friday April 26, 2013.
The said current index is widely used by the small and institutional investors as its represent total market value stood at 97.86 percent of the aggregate market value of all common stocks listed and traded on the floor of the Nigerian Stock Exchange (NSE) shows 0.68 percent growth over the previous record of 97.18 percent. This means The Ameh105 index’s stocks were more patronized by investors to All-share index’s 196 stocks.