Tuesday, October 30, 2018 5.50PM /
The second edition of the TIA forum which brings together Investors, Traders & Analysts across different asset classes (Equities, Fixed Income, FOREX, Commodities and other Derivative) to unravel investment opportunities, was hosted today at the Nigeria Stock Exchange.
It focused on the theme “Trends: Study the Past, Understand The Present To Forecast The Future” and was an opportunity for market stakeholders to interact with investors in the market.
Mr Bola Adeeko Head Shared Services Division for the Nigeria Stock Exchange giving the opening remarks at the event lauded the TIA Meet Up initiative and assured the organizers of the support of the exchange in driving activities that deepen the market.
Convener of the event Mr Adetunji Adesina of Trendnomics described the TIA as a platform for robust discourse and engagements across the capital market ecosystem, that is designed to empower participants to be intelligent/smart investors.
Representative of the Acting Director-General of the Securities and Exchange Commission Mr Steven Falomo commended the convener of the TIA Meet Up and his team, for another edition of the forum which will further deepen the discourse on ways to enhance investor education in the country.
Mr Falomo said developing a virile and efficient capital market was a top agenda of SEC Nigeria which will require the support of the government and all key stakeholders.
He shared that the Ten-year Capital Market Masterplan of SEC Nigeria was focused on three areas namely;
-Non-Interest markets and
-Capital market literacy
Investor education according to Falomo was a key focus as it will go a long boost financial literacy and reach out to the large market of retail investors.
In his presentation on Where are the markets headed now? Pre and Post Election volatility Mr Patrick Ajayi, CEO Woodland Capital and member council of the Nigerian stock exchange, shared his perspective on elections and the market.
Mr Ajayi believed that elections were just events, but the major issue was the information context from the polls and the implications for investors.
He made a strong case for investor education that will increase awareness amongst investors, that give will them deeper insight and understanding of how to interpret developments from elections and make informed decisions.
According to him “Some of the insights are what has led me to strongly conclude that electoral events do have informational content that impact and influence the market direction, but are not by themselves only responsible for market movements. This might also be as a result of our peculiar market structure (foreign investor participation sector dominance and the skewed nature of the index)”.
Mr Ajayi identified the following as talking points for the transformation of the market;
-Information dissemination channels 2019 and beyond
-Market structure (foreign investor v local participation)
-Diversifying the investor base
-The need for collaboration between fiscal and monetary policies
Also giving a presentation at the forum the Mr Dayo Obisun the MD, Greenwich Trust Limited and President of the Fund Managers Association of Nigeria(FMAN), speaking on “Managing Risk around the investment cycle using sector rotation” listed the common types of risk in investments which include;
-Interest rate risk
Mr Dayo Obisan believed diversifying investments amongst different companies and sectors can help reduce equity risks.
The Country Manager AFEX Nigeria speaking on “Perspectives on the New Realities on Agric Commodities Exchange” made a strong case for products in the agric segment of the market.
He shared that AFEX Nigeria had 60 warehouses and has worked with 100,000 farmers across the nation.
Balogun also listed the Input Bond (A Fixed Income note for Agriculture production) and the Exchange Traded Commodities as products that it has developed so far.