Diversify portfolios for accelerated returns, NGX tells investors

Nigerian Exchange Limited (NGX) has advised investors on the need to diversify their portfolios to ensure enhanced return on investment.

Temi Popoola, chief executive officer, NGX, said this in a statement on Thursday.

Popoola said the stock market performance has been buoyant as the NGX all-share index (NGX-ASI) year-to-date (YTD) return stood at 23.1 per cent as at May 25, 2022.

He said despite the current appreciation in equity prices, opportunities still exist for investors in other asset classes.

According to him, NGX, as a multi-asset exchange, has various products for investors — equities, fixed income, exchange-traded funds and derivatives — regardless of their investment goals, risk appetite or return expectations.

He said there are opportunities in every segment of the market.

The NGX CEO noted that it was important for investors to do the analysis, and understand where those opportunities are, as there are opportunities, not only on the equity side but across the various asset classes.

He stressed that diversification of the portfolio would go a long way to reduce risks, explaining the need for investors to rebalance their portfolios.

Explaining further, he said achieving success through growth that creates value will increase the exchange’s ability to operate efficiently and profitably in the transient advantageous economy that has unfolded in Nigeria and around the world.

“While there has been no respite in the macroeconomy and operating environment due to lingering oil price and foreign exchange pressures, our long-term outlook for the exchange remains positive as listed companies continue to show resilience and our members have been repositioned to deliver superior value to investors,” he said.

Popoola added that NGX would continue to find more products attractive to Nigerians and the youth demographic.