The Nigerian Stock Exchange (NSE) and Afrinvest Securities Limited (ASL) on Monday launched two new indices to optimise investors’ return.
The News Agency of Nigeria (NAN) reports that the indices are the NSE-Afrinvest Banking Value Index (BVI) and NSE-AFRINVEST High Dividend Yield Index (NSE-Afr HDYI).
Mr Oscar Onyema, NSE Chief Executive Officer, said the indices were designed in response to requests for applicable benchmarks for measuring value in banking stocks and high dividend stocks listed on the exchange.
Onyema said they would serve as tools for investment managers and corporate treasuries seeking appropriate benchmarks to evaluate the performance of their portfolios.
According to him, the indices can also be used as the performance target in index-replicating financial products such as Exchange Traded Funds and Derivatives.
“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.
“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 market place 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,” Onyema said.
Also speaking, Mr Ike Chioke, Group Managing Director, Afrinvest West Africa, said the company was proud and excited at the rollout of the new indices in collaboration with NSE.
Chioke said the partnership would serve as a veritable proponent for more forward-thinking initiatives to meet the need of the market.
“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.
Chioke said the NSE-Afr BVI and the NSE-Afr HDYI as with all other NSE indices would align with the NSE’s Index committee’s governance standards.
He added that guidelines and methodologies for the indices were publicly available on the website of NSE and Afrinvest.
NAN reports that the indices will be available real-time on both NSE and Afrinvest WA websites from Jan. 21.
