The Nigerian Stock Exchange (NSE) on Friday restated its commitment to providing quality market data to help investors make informed and healthy investment decisions.
Chief Executive Officer of the NSE, Mr Oscar Onyema, made the assertion during the Market Data Workshop held by the exchange in partnership with Infoware Limited on Friday in Lagos.
The workshop, themed: Handling Shocks in the Capital Market: A Quantitative Approach to risk management using Market Data, was held virtually.
Onyema, in his address of welcome, spoke on the usefulness of quality market data provided by the Exchange via deployment of innovative technologies.
He said it gave up to date pricing data to investors locally and internationally.
“Given the importance of market data in investment decisions, the exchange has strengthened its position in creating innovative products and platforms for engaging stakeholders,” Onyema said.
He said that 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 recalibration of their stock positions,” he said.
Onyema noted that COVID-19 pandemic affected global economies and financial markets and specifically had a negative impact on the Nigerian capital market.
This, he said, necessitated use of new technologies.
“The ongoing pandemic has sent shock waves to global economies and financial markets with far reaching and uncertain ramifications.
“In Nigeria, 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 abounds 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 corona virus pandemic and it is one of the numerous innovations of change at the NSE since the onset in March,” he said.
Onyema said that this year’s workshop was more critical, to examine how investors and key market players were using predictive analysis and quantitative strategies to mitigate risks.
He said it was also to examine how they were unlocking emerging opportunities and high value returns during the pandemic, empowered by NSE’s market data.
Ms Anita Gopaldas, Market Data Sales, Market Services of the NSE, said that market data was an integral ingredient in price formation processes vital to efficiency of the capital market.
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 efficient functioning of the capital market.
“The NSE market services provides professional and non professionals with quality real time and historical data report 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.
Olufemi Balogun, Head of Department, Market Services, NSE said that calibration enables an investor shape his model to adapt to changes in the market.
Balogun spoke on the theme of the workshop: Handling Shocks in the Capital Market: A Quantitative Approach to risk management using Market Data.
Mr Uwa Agbonile, Chief Executive Officer and Chief Architect, Indicate Limited said that investors should manage their risks properly.
Agbonile said that there were certain problems that market data would solve if properly harnessed.
“The challenges inherent in the capital market included Market size fragmentation, technology, lack of retail investor participation and intra-Africa investment”, he said.
According to him, if market data is not visible enough, investors will not know what to do and most likely will be driving blind.
Infoware intends to solve that problem with a series of its activities, he said.