The Chief Government Officer of the Nigerian Trade Restricted (NGX), Mr. Jude Chiemeka, has recognized the tokenization of Nigerian property as a sensible approach to appeal to Gen Zs and Millennials to the funding market.
Talking on the 2024 Investor Summit & Awards Dinner organized by Rising Africa on December 18, 2024, Mr. Chiemeka defined that youthful buyers want monetary merchandise that supply greater returns than conventional property like shares and bonds.
To cater to those preferences, Mr. Chiemeka hinted that the NGX is planning to introduce modern options, together with a blockchain-like interface to make investing simpler, quicker, and extra interesting.
“Gen Zs and Millennials could not discover property with 40% returns thrilling sufficient. They’re extra drawn to alternatives that promise double or triple these returns,” he mentioned.
He additionally highlighted the rising exercise in retail buying and selling, with $7 million price of transactions occurring day by day on the change.
When requested the way to enhance market liquidity, the CEO pointed to methods corresponding to environment friendly market-making, securities lending, and growing retail participation. These efforts, he famous, purpose to carry the NGX nearer to the requirements of worldwide markets.
He additionally emphasised the potential of derivatives buying and selling, which helps buyers handle dangers and will additional increase liquidity.
Via these steps, the NGX is concentrated on modernizing the market and assembly the wants of youthful buyers whereas retaining the change aggressive globally.
Efficiency of the All-Share Index in 2024
The Nigerian inventory market tracked by the All-Share Index has delivered a year-to-date efficiency of 34.38%, sustaining the bullish momentum carried over from the earlier yr into 2024.
- January noticed a exceptional surge because the index climbed by 35% month-to-date, pushed by a market quantity of 19 billion shares. It closed the month at 101,154 factors, up from its opening worth of 74,773 factors, marking the most effective month-to-month efficiency of the yr to this point.
- February introduced a slight pullback, with the index dipping to 99,980 factors. Nevertheless, March shortly reversed this decline, pushing the index above 104,000 factors.
- In April, the index got here below stress, influenced by recapitalization efforts that impacted funding sentiment within the monetary providers sector. This led to a decline, with the index dropping to 104,562 factors, representing a 6% lower.
- From April to August, the index skilled a retracement, closing at 96,580 factors by August.
- A turnaround started in September, because the index discovered assist and commenced a gentle restoration, reaching the 100,000-barrier by the third week of December.
As of December 19, the All-Share Index stands robust, opening above 100,400 factors, signaling resilience and renewed shopping for curiosity because the yr attracts to an in depth.
About Rising Africa
Rising Africa Group is an organization with a deal with Environmental, Social, and Governance (ESG) ideas.
- The group makes a speciality of advising, arranging, and facilitating funding and financing transactions. Its companions embrace private and non-private sector issuers, governments at numerous ranges, growth finance establishments, native and worldwide banks, and high-net-worth people.
- Rising Africa offers funding providers tailor-made to high-net-worth people, companies, and governments, working to assist financial growth and sustainable progress throughout the continent.
The corporate additionally organizes occasions just like the Investor Summit & Awards Dinner to encourage collaboration and discussions on funding alternatives in Africa.
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