How Digital Trading Platforms Deepen Nigeria’s Retail Stock Market

Proshare

Wednesday, May 15, 2019  / 6:48PM / Bukola  Akinyele  for Proshare WebTV/ Header Image Credit: @nsenigeria

 

At the recent maiden Nigeria stock exchange retail coverage workshop in Lagos, Mr Jude Chiemeka, Divisional Head, Trading Business who represented the CEO , Mr Oscar Oyema, observed that about 3 million retail investors, are currently captured in the Nigerian stock market.

This represents 3% of the Nigerian adult population, the country itself has a population reportedly over 190 million people.

According to Chiemeka the low adult population participation rate in the stock market underscores the need for deepening market penetration, through the  participation of retail investors.

Giving further insight into market dynamics, Chiemeka in his opening remarks noted from that retail investors outperformed institutional investors by 8 percent in January 2019, and again by 2 percent in March. 

According to the stock market executive digital platforms provide immense opportunities for reaching out to millions of retail investors, especially at a time of a fourth industrial revolution, where robotics, artificial intelligence and machine learning define the new business ecosystem.

Interestingly, the Nigerian stock market is witnessing significant shifts with  market operators, adopting online trading platforms to improve spread and service delivery quality.

Mr Nsikak John, Head, Enterprise Innovation Hub at the Exchange, in an interview with Proshare was of the view that USSD channels, other smart business channels and Apps are now deployed by market operators, which has also improved the interface with retail audiences and increased engagement with tech-savvy millennials.

On his part he said the NSE through its Hub is partnering Fintechs, to drive increased market participation.

Speaking on the Exchange’s Online Trading Portal, Mr Jaiyeola Awokoya, Head, Retail Sales at Vetiva Research, said that online trading has become a game changer and it has added value to investors trading journey. He said, for brokers it has also allowed for efficiency.

Proshare Nigeria’s leading financial information hub has since 2016 developed and successfully carried out the “Online Trading Portal Rankings”, which has been widely received as a reliable metric for assessing the quality of online trading service by active CMOs.

Through the ranking which is methodical, thorough and transparent, the following developments have occurred in the markets;

  • Healthy competition amongst capital market operators with online trading portals
  • High value for innovation on the part of capital market operators with online trading portals
  • Improved service delivery from the capital market operators with online trading portals
  • Encouragement to the outstanding platforms and a challenge to those that need to improve theirs.

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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