The Nigerian Stock Exchange (NSE) has strengthened its position in providing quality data and creating innovative products that would help investors to make informed investment decisions.
Chief Executive Officer of the NSE, Oscar Onyema, made the assertion during the Market Data Workshop held by the Exchange in partnership with Infoware Limited, in Lagos, at the weekend.
The workshop themed: “Handling Shocks in the Capital Market: A Quantitative Approach to risk management using Market Data,” was held virtually.
Onyema, in his welcome address, spoke on the usefulness of quality market data provided by the Exchange via deployment of innovative technologies to drive market efficiency.
According to him, the NSE delivered real time data using innovative technology to provide up-to-date pricing data to traders and risk managers, who are active in many different markets to fill their application for real time monitoring of their investments.
“Portfolio managers rely on NSE real time data for their investment portfolio applications, which helps determine their exposure to their portfolio using this scenario analysis and portfolio evaluation.
“Due to the ease of access, traders are able to focus more on the recalibration of their stock positions,” he said.
Onyema continued: “The ongoing pandemic has sent shock waves to global economies and financial markets with far reaching and uncertain ramifications.
“In Nigeria, the equities market recorded negative performance in the Q1 of the year with the All Share Index (ASI) posting a quarterly return of negative 20.65 per cent in Q1 of 2020.
“This was a steep decline from -1.24 percent recorded in the corresponding period of the previous year. However, the market saw an upswing since April 2020 and has so far gained +31.67% year-to-date to the current level of 35,342.46.
“This surprising feat particularly during the pandemic in addition to favourable policy environment can be attributed to smart investors bargain hunting and the release of positive year financial results of several listed companies coupled with improved dividend declarations.
“It demonstrates the opportunities that abound in the market for discerning investors even in the time of crisis and underscores the importance of quality market data for investment decision making.
“The shift to digital was necessitated by the current global coronavirus pandemic and it is one of the numerous innovations of change at the NSE since the onset in March,” he said.
Also speaking, Market Data Sales, Market Services of the NSE, Ms Anita Gopaldas, said: “We have seen major advancements in technology, market structure and scope of services offered in terms of the increase in trading activities across most if not all, asset classes.
“Market data is an integral ingredient in the price formation process, which is vital for the efficient functioning of the capital market.
“The NSE market services provide professionals and non-professionals with quality real-time and historical data reports for analysis, research, and reporting purposes.
“We have leveraged strategic partnerships with some of the world’s leading data providers, which further ensures that our investors across the United States, Europe, Asia, Africa and other parts of the world are able to make right and informed investment decisions in the capital market,” she said.
Head of Department, Market Services, NSE, Olufemi Balogun, noted that calibration enables an investor to shape his model to adapt to changes in the market.
Balogun, who spoke on the workshop theme, urged investors to manage investment risks properly, noting that there are certain problems that market data would solve if properly harnessed.