Thursday, January 23, 2020 / 09.15AM /
Bukola Akinyele for WebTV / Header Image Credit: @nsenigeria
The Lotus Islamic Index of the Nigeria Stock Exchange (NSE) dropped -17.87% in 2019.
Tumbling market indicators affected other sectors like the NSE Consumer Goods Index, which dipped -20.83%, the NSE Main Board which declined by -20.00% and the NSE Insurance Index and the NSE Premium Index that also fell -0.52% and -3.59% respectively.
The NSE Lotus Islamic Index slumped to 1,834.76 basis points in 2019 down from 2,233.95 basis points in 2018.
As part of efforts to deepen the Non-Interest finance market, the NSE in 2019 hosted the inaugural Islamic Finance in Nigeria forum (IFN) in partnership with the Redmoney Group to nudge Islamic equity investments forward, for infrastructure development and economic growth.
The NSE has been at the forefront of the listings of the Federal Government of Nigeria Sukuk bonds of 2017 and 2018, which has provided an opportunity to broaden the market.
With the 2019 dip in the performance of the NSE Lotus Islamic Index, the expectation is that the exchange will explore how the index could improve in 2020.
The Debt Management Office (DMO) has said that it will approach the market to issue a third Sukuk to support the socio-economic development of Nigeria.
The NSE Lotus Islamic Index provides Shari'ah -friendly businesses an opportunity to reach out to more potential investors. The Index also offers Islamic investors a chance to participate in the businesses of the companies included in the index, without compromising their beliefs.