The Nigerian Stock Exchange (NSE or the Exchange) is advocating for Pension Fund Administrators to increase their participation in the capital market by taking advantage of the low prices of listed stocks to diversify their portfolios for long term capital growth.
This appeal was made during a courtesy visit by Mr Jude Chiemeka, the Head of Trading Business Division at the Exchange during an official visit to the National Pension Commission in Abuja. He was received by Dr Umaru Farouk Aminu, Head, Research & Strategy Management.
According to Mr Chiemeka, “low uptake in the capital market by PFAs is traceable to the crisis of 2008 and perceived governance issues around some issuers. The NSE has improved its rules, strengthen enforcement, deployed artificial intelligence to monitor the market, launched the investor’s protection fund and a few more initiatives aimed to protect investors and ensuring issuers deliver value to stakeholders. We hold the view that a sustained liquidity injection by PFAs would rekindle interest and greater participation by investors in the Nigerian stock market. This, in turn, will allow PFAs to experience capital appreciation on their investment. The current valuation of stocks makes it even a more attractive time to increase their participation”.