A panel of capital market operators has identified strategic investment opportunities to boost income streams of securities dealers on the Nigerian bourse.
A five- man panel, who spoke at a recent Chartered Institute of Stockbrokers’ Mandatory Continuous Professional Development (MCPD) Webinar, titled “Opportunities for Stockbrokers : Post COVID-19 pandemic”, advised Securities dealers to do a lot more in enhancing their skills and competencies.
They warned that the market ultimately belongs to those who embrace pro-active and innovative business strategy under the new normal.
The stockbrokers identified asset classes, including equities, fixed income securities, commodities and derivatives as potent investment vehicles, which present opportunities for securities dealers to specialise.
The lead speaker and the Exchange’s Divisional Head, Trading Business, Mr Jude Chiemeka posited that COVID-19 pandemic had imposed on all professionals, the need to review business models and re-invent the wheel if need be.
“The markets will continue to move in cycles in response to economic policies and global news flow. This volatility creates opportunities for market participants to benefit from bursts of short-term market swings over the long-term, albeit the ability to innovate and use newer market tools such as Exchange Traded Funds (ETFs), securities lending, hedging solutions and a host of others to ride these movements in the market will differentiate market participants”, Chiemeka said.
Corroborating him, the Chief Executive Officer, Stanbic IBTC Nominees, Mr Akeem Oyewale, who noted that the new generation of investors would be financially literate, maintained that stockbrokers should be scouting for business opportunities beyond Nigeria.
“Oyewale said: “Income stream of brokerage firms has become challenging as the market is largely dominated by top ten Dealing Member Firms. There is a compelling need for shared resources and cost optimisation on the part of market operators. Demutualization of The Nigerian Stock Exchange is expected to present robust opportunities.”
The Managing Director, Lagos Commodity and Futures Exchange (LCFE), Mr Akin Akeredolu-Ale advised stockbrokers to go back to the drawing board in the areas of innovation and creativity in order to maximise business opportunities that post COVID-19 shall provide.
Akeredolu-Ale who spoke extensively on how Commodity Exchange can upscale Nigeria’s Gross Domestic Products (GDP), explained that LCFE had put in place, effective structures, to commence trading in Solid Minerals, Agriculture, Oil and Gas and Currency.
The Webinar’s Moderator and Managing Director, FBNQuest Securities Limited, Fiona Ahimie urged securities dealers to position themselves for post COVID-19 as it will come with an array of business opportunities of which only the globally competitive operators can take optimal advantage.
