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NSE, Afrinvest launch tools for optimising returns on investment 

By Helen Oji
23 January 2019   |   4:21 am
The Nigerian Stock Exchange (NSE), and Afrinvest Securities Limited (ASL), a leading capital market research and securities execution platform...


The Nigerian Stock Exchange (NSE), and Afrinvest Securities Limited (ASL), a leading capital market research and securities execution platform, announced the launch of the NSE-Afrinvest Banking Value Index (NSE-Afr BVI), and the NSE-Afrinvest High Dividend Yield Index (NSE-Afr HDYI), designed to optimise investors returns through measurement of stocks value .

The indices became available real-time on both the NSE, and Afrinvest WA websites from Monday.

According to the Exchange, NSE-Afr BVI, and NSE-Afr HDYI were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the local bourse .

“They will serve as tools for investment managers and corporate treasuries seeking appropriate benchmarks to evaluate the performance of their portfolios to a segment of the banking sector or high dividend orientation as applicable.

“The indices can also be used as the performance target in index-replicating financial products such as Exchange Traded Funds and Derivatives.”

The Chief Executive Officer, NSE, Oscar N. Onyema, said in view of rising demand for financial products that adequately meet the needs of market participants, particularly investors, the Exchange is pleased to collaborate with Afrinvest West Africa on the novel index strategies.

Onyema continued: “The indices consider the fundamentals of underlying securities. We commend Afrinvest for its product innovation, and for leveraging the Exchange’s index calculation and management expertise .

“The Exchange is committed to driving sustainability of our marketplace, and supporting investable product creation endeavours by stakeholders to enhance the depth of the market. We will continue to welcome innovative solutions to identifiable gaps in the capital market.”

The Group Managing Director, Afrinvest West Africa, Ike Chioke, said the firm is proud and excited by the rollout of the new indices in collaboration with the NSE.

“It is our belief that this partnership will serve as a veritable proponent for more forward-thinking initiatives meeting market needs. On the back of these indices, investors will now enjoy the benefits of proxies that seek out dividend-paying stocks and value-oriented banking stocks listed in Nigeria,” he said

The NSE-Afr BVI, and the NSE-Afr HDYI as with all other indices, will align with the NSE’s Index committee’s governance standards. Guidelines and methodologies for the indices are publicly available on the websites of NSE, and Afrinvest.