Stock Exchange says opportunities still exist for investors

In spite of the current downturn in the capital market, opportunities still exist for investors in Nigerian market across stocks, Exchange Traded Fund (ETFs), and bonds, said Oscar Onyema, Chief Executive Officer, Nigerian Stock Exchange (NSE) at the induction ceremony for recently qualified dealing clerks.

The NSE CEO noted that while there has been no respite in the macro economy and operating environment due to lingering oil price and foreign exchange pressures, “our long-term outlook for the Exchange remains positive.”

“Our listed companies continue to show resilience and our members are being repositioned to deliver superior value to investors. It is important to note that of the 24 exchanges in Africa, 20 are experiencing a downturn”, Onyema said.   

The Nigerian Stock Exchange (NSE) inducted 31 qualified Dealing Clerks and charged them to uphold the virtues of integrity, good character and high ethical and professional standards.

According to Onyema, it is important for dealing clerks to help investors understand the dynamics of the market and advise them on a portfolio approach to investment.

With the rigorous process leading to their qualification, Onyema noted that the dealing clerks are worthy to be a practicing stockbroker “and able to trade on any floor of the Nigerian Stock Exchange in Nigeria”.

“If you look at large, mid and small cap securities; mid cap securities have done well, they have returned about 6 percent positive. The whole market is about 18 percent down and that is because of the weight of the large cap securities”, the NSE CEO said.

He stated further: “At the Exchange, we have clear and enforceable rules, with a zero tolerance policy on all infractions. We are committed to building the foundational aspect of the market in terms of transparency, orderliness, fairness, disclosure, and more importantly how we enforce our rules and regulations. These factors will combine to shore up investors’ confidence in these challenging times.”

Through technology, the NSE is changing the game as well to become a more transparent and efficient Exchange. On the back of deploying X-GEN, the NSE robust trading platform, the Exchange has introduced X-Issuer for the electronic submission of relevant information by issuers; X-Whistle to enable market participants to confidently report fraud and infractions and X-Compliance Report, a transparency tool designed to help maintain market integrity, by providing compliance related updates on all listed companies. 

“At least seven dealing members have developed  mobile trading apps on the back of X-GEN to give their clients a new experience where they can monitor, buy and sell NSE traded securities from their phones from anywhere in the world.

“As we continue to work towards achieving and sustaining this market, the importance of your role cannot be over emphasised. The investing community will know and judge the Nigerian capital market through your character and service performance; the manner in which you engage, interface, counsel and service your clients will go a long way in shaping the perception of our market,” Onyema further noted.

Iheanyi Nwachukwu