Jan 23 (Lagos) - The Nigerian Stock Exchange (NSE) and Afrinvest Securities Limited (ASL), a capital market research and securities execution platform, have announced the launch of two new factor indices to optimise investors’ return.


The indices are NSE-Afrinvest Banking Value Index (NSE-Afr BVI) and NSE-Afrinvest High Dividend Yield Index (NSE-Afr HDYI). The indices will be available real-time on both NSE and Afrinvest WA websites from January 21, 2019.


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 Exchange.


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.


On the launch of the indices, the chief executive officer? of the Exchange, Mr. Oscar 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 these novel index strategies.”


Onyema said the indices consider the fundamentals of underlying securities, commending Afrinvest for its product innovation and for leveraging the Exchange’s Index calculation and management expertise.


According to him, 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.


Group managing director, Afrinvest West Africa, Mr. Ike Chioke, said “Afrinvest West Africa is proud and excited at 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,” Chioke said.


The NSE-Afr BVI and the NSE-Afr HDYI as with all other NSE indices will align with the NSE’s Index committee’s governance standards.




Reporting for esaykobo.com Wed, 23 Jan 2019 from Lagos Nigeria.