New indices focused on value banking stocks and high dividend-paying stocks
Built on years of index calculation, governance and management prowess of the Exchange and
Afrinvest’s rigorous capital market research expertise
The Nigerian Stock Exchange (“the Exchange” or “NSE”), a multi-asset exchange & index provider, and Afrinvest Securities Limited (“ASL”), a leading capital market research and securities execution platform, are pleased to announce the launch of two new factor indices: the 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 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. 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 N. Onyema, OON, remarked, “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. 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”.
Mr. 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.
About Afrinvest Securities Limited:
Afrinvest Securities Limited (“ASL”) is a licensed broker dealer and subsidiary of Afrinvest (West Africa) Limited. Research is at the very core of our business value proposition as we strive to provide our clients, both internal and external, with in-depth knowledge, thought and leadership required for sound investment decisions. Given the knowledge and experience of our research analysts, our research publications are widely acknowledged to rank amongst the most incisive and detailed.
About The Nigerian Stock Exchange:
The Nigerian Stock Exchange services the largest African economy through a leading sub-Saharan African financial centre. The NSE is an automated exchange providing listing and trading services, as well as electronic Clearing, Settlement and Delivery (CSD) services through the Central Securities Clearing System (CSCS) Plc, an associate company. The Exchange also offers market data dissemination services to data vendors and other institutional users, as well as indexing services to index providers and users.
