Capital Operators Laud NSE’s Ethical Fund Index

Some capital market operators have said that the inauguration of the Shari’ah compliant index would stimulate the floatation of many more on the Nigerian Stock Exchange (NSE).

They said in Lagos, that the inauguration of the NSE’s Lotus Islamic Index (NSE LII) had opened an investment window to promote new ethical products.

Alhaji Rasheed Yussuf, the Managing Director of Trust Yield Securities Ltd., said that the launch would widen investor horizon, as new investors with certain beliefs would now access the market.

“The NSE launching of the Islamic index has provided opportunity for other people and corporate organisations to promote more ethical funds for interested investors,” Yussuf said.

He urged the management of the NSE “to ensure that every fund listed at the Exchange meets the set requirement in terms of investor protection and management”.

Mr Emeka Mmadubuike, the Chairman, Association of Stock broking Houses of Nigeria (ASHON), said that the index would broaden the scope of the market.

Mmadubuikesaid that it would open a new investment window as more Sharia sensitive investors would be attracted to the market.

Malam Garba Kurfi, the Managing Director of APT Securities and Funds Ltd., urged the Exchange to increase its partnership to boost investors’ confidence.

Our source reports that the Exchange, in partnership with Lotus Capital Ltd., on Monday inaugurated the first Islamic Index in the capital market.

The NSE Lotus II, which covers 15 equities with combined market capitalisation of around N2.87 billion, excludes banks and other companies which goals do not conform with Islamic principles.

The Exchange said that the new index was designed to attract Sharia/ethical investors to Nigeria’s fledgling stock market, particularly those from the Middle East.