Afrinvest-NSE newly launched equity indices to boost investor returns

Yielding to the needs of investors who yearn to evaluate the performance of their equity investments listed on key segments of the Nigerian Stock Exchange (NSE), the NSE has launched two new equity indices in collaboration with Afrinvest Securities Limited.

The NSE in a statement on Monday revealed that the new indices namely, the NSE-Afrinvest Banking Value Index (NSE-Afr BVI) and NSE-Afrinvest High Dividend Yield Index (NSE-Afr HDYI) will be available real-time on both NSE and Afrinvest WA websites from Monday, 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, according to the local bourse.

Furthermore, 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 NSE said the indices can also be used as the performance target in index-replicating financial products such as exchange traded funds (ETFs) and derivatives.

According to Oscar N. Onyema, CEO of the NSE, the collaborative effort is in view of the rising demand for financial products that adequately meet the needs of market participants, particularly investors.

“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.” Oscar N. Onyema, CEO of the NSE remarked on the launch of the indices.

“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,” he added.

Ike Chioke, group managing director, Afrinvest West Africa, also said, “Afrinvest West Africa is proud and excited at the rollout of the new indices in collaboration with The Nigerian Stock Exchange.

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”.

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. Guidelines and methodologies for the indices are publicly available on the website of NSE and Afrinvest.