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Tuesday, September 27, 2022

‘Investors need accurate data to succeed in capital market’

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Chief Executive Officer, Absa Securities, Akinkunmi Majaro has emphasised the importance of accurate data in minimising risks and enhancing potential for success for investors in the capital market.

He said investors and stakeholders need to prioritise market data to achieve success  considering the various global and macroeconomic challenges.

Absa’s advice follows the increasing trend of data dependence in capital market participation and decision making. Globally, there is an increase in the reliance of market data as a tool for making sound financial decisions, and the Nigerian case is no different.  A study carried out by Refinitiv in 2020 shows that, 57 per cent of capital markets professionals expect to spend more time analysing data, and 74 percent believe data analysis to be the most important skill that will be required to work on the future trading desk.

“Market data is a valuable recourse for portfolio investors during a challenging cycle. Hence, capital market data is designed to provide market participants with in-depth knowledge of market conditions.  Considering the various challenges besetting the global economy, these investors need accurate data to make informed investment decisions to avoid unfavourable market moves,” Majaro said.

The importance of data for improved participation at the NGX was highlighted by the Chief Executive Officer, NGX, Temi Popoola, at an earlier workshop where he stated that the NGX, continues to promote a high level of market transparency by enabling easy access to quality real time market data to market participants, including regulators.

He emphasized that market data such as transaction prices, bids/offers and other trading information becomes the bedrock for price discovery and investment strategies. In line with Absa’s commitment to improving performance in the capital market, the bank has created an online interactive platform where updates on price movements, different investment portfolio options, data on global stock market as well as exchange-traded funds are shared to help investors make informed trading and investment decisions and manage their financial future.

This comes on the heels of the NGX and MTN Nigeria Communications Plc (MTNN) signing a Memorandum of Understanding (MoU) to further promote financial literacy and enhance retail participation in the Nigerian capital market. The Absa online interactive platform and other initiatives such as the NGX and MTNN collaborative efforts will further entrench the deployment of technology as technology as-a-service to develop capital market solutions, enhance capacity development, and ultimately promote the use of date to improve participation in the capital market.

Absa, offers investment banking and market products through its various Nigerian registered subsidiaries, namely Absa Representative Office Nigeria Limited, Absa Capital Markets Nigeria Limited, and Absa Securities Nigeria Limited.

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