Absa Nigeria, a leading pan-African bank with a strong footprint across the African continent, has advised stock market investors and stakeholders to prioritise market data to succeed in the capital market.
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 on market data to make 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 per cent believe data analysis to be the most important skill required to work on the futures trading desk.
According to Akinkunmi Majaro, the Chief Executive Officer (CEO) of Absa Securities, “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.”
The importance of data for improved participation at the NGX was highlighted by the Chief Executive Officer, NGX, Temi Popoola (CFA), 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 all market participants including regulators.
He emphasised 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 the 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.