NGX tells investors to diversify investment portfolios for better returns

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Uba Group

Uba Group

BY BAMIDELE FAMOOFO

Nigerian Exchange Limited has emphasized the need for diversification of portfolios by investors to ensure enhanced return on investment.

The Chief Executive Officer of NGX, Temi Popoola stated this, as the stock market continued its uptrend rally.

So far this year, the Nigerian stock market performance has been buoyant with the NGX-All Share Index (NGX-ASI) Year-to-Date (YTD) returned stood at 23.1 per cent as at May 25, 2022 and is currently over the psychological 50,000-level for the first time since the 2008 crash, as opposed to the broad-based bearish performance experienced in other markets.

Popoola stated that in spite of the current appreciation in prices of equities in the country, opportunities still exist for investors in other assets classes. He said as a multi-asset Exchange, NGX has various products for every investor regardless of what their investment goals, risk appetite or return expectations might be, listing the products as equities, fixed income, Exchange Traded Funds and Derivatives.

According to him, there are opportunities in every segment of the market. It is important for investors to do the analysis, understand where those opportunities are, as there are opportunities, not only in the equity side but across the various asset classes.

He stressed that diversification of the portfolio would go a long way to reduce risks, explaining the need for investors to re-balance their portfolio.

Popoola however said that the Nigerian capital market and the business of the stock exchange would always be impacted by dynamic economic trends and investor demands.

Explaining further, he said achieving success through growth that creates value will increase the Exchange’s ability to operate efficiently and profitably in the transient advantage economy that has unfolded in Nigeria and around the world.

“While there has been no respite in the macro economy and operating environment due to lingering oil price and foreign exchange pressures, our long-term outlook for the Exchange remains positive as listed companies continue to show resilience and our members have been repositioned to deliver superior value to investors,” he said.

Popoola noted that NGX would continue to find more products that a lot of Nigerians and the youth demography are attracted to, and introduce to the market.