MSCI Retains Nigeria in Frontier Markets Indexes, says Investor’s Confidence Rising

0
363
Candle stick graph and bar chart of stock market investment trading. Analysis Forex price display on computer screen.

MSCI announced today its decision to retain the MSCI Nigeria Indexes in the MSCI Frontier Markets Indexes. The market will be removed from the review list for potential reclassification to Standalone status.

“Market participants have indicated that since the establishment of this Window, funds can be repatriated at close to the official rate. Concerns on the spreads and delays which investors have earlier experienced have also eased.”

MSCI will also no longer apply the special treatment for the MSCI Nigeria Indexes announced on April 29, 2016. More specifically, and as part of the upcoming November 2017 Semi-Annual Index Review , MSCI will implement all index review changes, including changes in the Number of Shares (NOS) and Foreign Inclusion Factors (FIF) that have been postponed since April 29, 2016. These changes will be made for securities classified in Nigeria in the MSCI Nigeria Indexes and in indexes which Nigeria is a component of.  These include the MSCI Factor, Thematic, ESG and other relevant derived indexes. MSCI will also resume the regular implementation of corporate events effective immediately.

Index review changes for the MSCI Nigeria Indexes will be announced together with the November 2017 Semi-Annual Index Review announcement on November 13, 2017.

As a reminder, the MSCI Nigeria Indexes were added to the review list for potential reclassification to Standalone status in September 2016 due to issues in the foreign exchange market leading to impairment in the ability of institutional investors to repatriate capital.

On April 21, 2017, the Central Bank of Nigeria (CBN) announced the establishment of the Investors’ and Exporters’ FX Window which aims to improve liquidity in the foreign exchange (FX) market. Market participants have indicated that since the establishment of this Window, funds can be repatriated at close to the official rate. Concerns on the spreads and delays which investors have earlier experienced have also eased.

 

 

SHARE
Previous articleUnity Bank Plc Appoints Alhaji Aminu Babangida as Board Chairman
Next articleManchester United boss Jose Mourinho: ‘I Hate EFL Cup draw’
Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA). He currently lives in Manhattan New York

LEAVE A REPLY

Please enter your comment!
Please enter your name here