Capital Operators Laud NSE's Inauguration Of Ethical Fund Index

Leadership, Capital Market – July 31, 2012 -- 
Some capital market operators have said that the inauguration of the Shari’ah compliant index would stimulate the floatation of many more on the Nigerian Stock Exchange (NSE).

They told the News Agency of Nigeria (NAN) on Tuesday, in Lagos, that the inauguration of the NSE’s Lotus Islamic Index (NSE LII) had opened an investment window to promote new ethical products.

AlhajiRasheed Yussuf, the Managing Director of Trust Yield Securities Ltd., said that the launch would widen investor horizon, as new investors with certain beliefs would now access the market.

“The NSE launching of the Islamic index has provided opportunity for other people and corporate organisations to promote more ethical funds for interested investors,” Yussuf said.

He urged the management of the NSE “to ensure that every fund listed at the Exchange meets the set requirement in terms of investor protection and management”.

Mr Emeka Madubuike, the Chairman, Association of Stock broking Houses of Nigeria (ASHON), said that the index would broaden the scope of the market.

Mmadubuikesaid that it would open a new investment window as more Sharia sensitive investors would be attracted to the market.

MalamGarba Kurfi, the Managing Director of APT Securities and Funds Ltd., urged the Exchange to increase its partnership to boost investors’ confidence.

NANreports that the Exchange, in partnership with Lotus Capital Ltd., on Monday inaugurated the first Islamic Index in the capital market.

The NSE Lotus II, which covers 15 equities with combined market capitalisation of around N2.87 billion, excludes banks and other companies which goals do not conform with Islamic principles.

The Exchange said that the new index was designed to attract Sharia/ethical investors to Nigeria's fledgling stock market, particularly those from the Middle East.

Mr Oscar Onyema, the Chief Executive Officer of the NSE, said that the Index would ease investors’ plight in the market and improve diversification.

Leadership, Capital Market –Tuesday July 31, 2012

All right Reserved. © 2014 Lotus Capital