Nigeria Stock Exchange in talks to increase liquidity
This move will see increased cross listings of Exchange Traded Funds(ETF’s) on the larger exchanges on the continent.Discussions are currently underway between market participants in Nigeria,Kenya and South Africa to launch the cross listing of ETFs.
Haruna Jalo-Waziri, Executive Director, Business Development, at the Nigerian Stock Exchange, said this collaboration underscores the exchange’s commitment to providing investors with a wide range of investment products to help them realize their financial goals.
“ETFs are becoming attractive to many investors offering them portfoliodiversification and reduce cost of investing. We are proud once again tobe collaborating with reputable exchanges in Africa to bring this new andexciting investment opportunity to bolster trade across multiple markets.”
ETFs are a collection of equities, commodities or bonds bundled together in a fund to ensure that investor risks are evenly spread across this range of securities. ETFs are only written off specific index-relatedsecurities that are listed on a stock exchange, and this makes it possibleto invest in a diverse range of securities through a single exchangetraded product.
The concept of cross listing an ETF is the same as cross listing a share,or listing it on more than one exchange. It provides domestic investorswith access to opportunities from another market, in the convenient andcost effective form of an ETF.
By cross listing ETFs on African exchanges, investors will be given accessto liquid company shares tracked by indices such as the FTSE/ JSE Top 40;the FTSE/ NSE Kenya 15 Index; and the MSCI/Nigeria ETFs.
– CAJ News
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