Connect with us


Morgan Stanley deletes Cadbury, Diamond bank, 5 other Nigerian companies from global index



Global provider of research-based indexes and analytics- Morgan Stanley Capital International (MSCI), has deleted seven Nigerian companies from its global indices after the companies failed to meet the market fundamentals required for continued listing in the indices.

In its semi-annual review, which is due for implementation on November 30, 2017, MSCI deleted six Nigerian companies-Cadbury Nigeria, Diamond Bank, FCMB Group, GlaxoSmithKline Consumer Nigeria, Skye Bank and Sterling Bank from its MSCI Frontier Markets Small Cap Index.

The global equities tracker also deleted Forte Oil from its Main Frontier Markets Index while downgrading three other Nigerian companies-FBN Holdings, Guinness Nigeria and PZ Cussons Nigeria to the MSCI Frontier Small Cap Index.

Read Also : NSE LIVE! Equities continue fall with N116bn loss

The Main Frontier Markets Index tracks large and mid-cap stocks while the MSCI Frontier Small Cap Index tracks small-cap stocks in the designated frontier markets.

It should be noted that the Nigerian Stock Exchange (NSE) had earlier downgraded Forte Oil and Guinness Nigeria from its “high-priced stocks” group, after the two companies suffered consistent steep depreciation in market values.

The board of directors of Forte Oil recently suspended the energy group’s bid to raise new equity funds, after it had secured regulatory approval to float a supplementary capital raising through a book building.

The board stated that it took the strategic decision to put the offering on hold pending the conclusion of an ongoing corporate restructuring.

Forte Oil had started the book building for its N20 billion offer for subscription with main consideration for qualified institutional investors and high net worth individual investors. It had planned to raise N20 billion in new equity funds under its new capital raising, after it successfully raised N9 billion in debt issue.

The indigenous energy company has approval to raise up to N71 billion under a N100 billion capital raising programme approved by the shareholders of the company.



RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now