Nigerian Exchange Limited (NGX) remains committed to fostering the growth of the Nigerian Capital Market (NCM) through increased investor participation. NGX made this known during a virtual webinar for retail investors titled “Increasing retail participation through digitalization” in Lagos recently.
In his opening remarks, NGX Division Head, Capital Markets Jude Chiemeka said retailer participation in capital markets has continued to soar across the world over the years and credited this increase to technological advances and digital innovations made especially during the covid19 pandemic.
Highlighting a 2021 report titled “The Rise of Newly Empowered Retail Investors,” Chiemeka said about six million Americans downloaded a trading app in January 2021 alone, and retail brokers saw daily volumes. record averages for equity and options transactions.
“The increase in retailer participation is also seen in the Indian stock market, with active investor accounts growing by a record 10.4 million in India post-pandemic 2020.
While listing its efforts and progress in improving investor participation in the NCM, Chiemeka noted that the Exchange is keen to collaborate with organizations that have proven and reliable technology solutions to adapt to digital trends and technologies, as well as to innovate with new business models and Products.
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“An example of this innovation was experienced in December 2021, when the Stock Exchange facilitated the public offering for sale of 575 million shares held in MTN Nigeria by MTN Group to investors, especially retail investors through the App NGX PrimaryOffer The offer was priced at N169 per share and oversubscribed by 139.47%.
The oversubscription led to the allotment of an additional 86.25 million shares by MTN, totaling 661.25 million shares. A total of 126,720 retail investors submitted valid applications and received a full allocation. Over 89% of retail offer subscribers applied through the PrimaryOffer platform and 114,938 new central securities clearing system accounts were opened by new investors,” he said.
According to him, this giant leap clearly shows the impact of digital transformation, enabling transparent and reliable market access for all categories of investors, including institutional and retail investors inside and outside. from the country.
“The importance of digitalization in the capital market for retail investors cannot be overstated, as it would lead to increased efficiency and improved financial literacy awareness of the market and its products.
The availability of various digital platforms (trading apps and portals) would provide retail investors with market access and convenience to execute trades themselves,” he said.
Chiemeka went on to note that NGX will continue to leverage technology and work with key stakeholders to increase retailer participation in the NCM and remains committed to fostering the growth of the Nigerian capital market through increased retailer participation. investors.