Chinwendu Obienyi
These days, it seems what any one can talk about is the pandemic that has taken over the world — Coronavirus (COVID-19). Unfortunately, there has been an alarming number of confirmed cases of COVID-19 in Nigeria.
This has translated to communities, businesses as well as the Nigerian capital market, struggling to combat the infections.
Right now, the principle of buying and selling securities to investors may seem a discouraging task, but surprisingly, investing is almost akin to most other financial decisions due to the impact of the pandemic. This is because potential investors would want to understand the product or service of interest, know its strengths, weaknesses, substitutes and the chances of experiencing buyer’s remorse.
Thus, in order to get the best possible outcomes from any investment in the capital market, it is important that investors are exposed to market information – not just the security name – but also insights into the underlying securities, their past performance, price trends, and other fundamental factors that impact on the attractiveness or resilience of the security.
This is why access to information is very vital because once investors have access to market information, their investment decisions would be better and faster.
The question is how can potential or existing investors get access to vital data or information in the capital market? The answer is technology which refers to methods, systems, and devices (such as computers, laptops, Wi-Fi) which are the result of scientific knowledge being used for practical purposes.
It is of a fact that computers have revolutionised the trading of securities with the stock market currently in the midst of a dynamic transformation and it is clear that the market of the future will not resemble the markets of the past.
Technology has made it possible for information regarding stock prices to be sent all over the world in seconds. Presently, computers route orders and execute small trades directly from the brokerage firm’s terminal to the exchange. Computers now link together various stock exchanges, a practice which is helping to create a single global market for the trading of securities.
It is said that with continuing improvements in technology,execution of trades globally will not become a problem as long as there is access to it which will in turn attract investments.
Speaking to Daily Sun recently, Group Managing Director, Afrinvest West Africa, Ike Chioke, said, digital platforms ought to be created as the pandemic has affected proceedings in the business community.
“The COVID-19 pandemic presents an opportunity for Nigeria to reset the economy and the way the country runs. For instance, digital platforms can be created for people to record what has been delivered. I think that the capacity to come up with an appropriate plan exists within Nigeria. I also think the government has been saying all the right things but we have been with them for 5 years and discovered that they say the right things but they often fail when it comes to execution and so a digital map is urgently needed”, he said.
Realising the importance of improved access to data, the Nigerian Stock Exchange (NSE), recently upgraded its data portal, known as X-Data Portal. The X-Data Portal is an online repository of real time, delayed, end-of-day and historical data for all securities listed on the NSE and has been enhanced with new features including data new products, subscription management, payment gateway integration and more.
With this upgrade, the NSE is facilitating a customer-centric approach to deliver a superior customer experience to those in need of market data.
Commenting on the development, the Chief Executive Officer, NSE, Oscar Onyema, said: “The upgrade of the X-Data Portal is in line with the desire of the NSE to continue to provide an exchange that is easily accessible leveraging digital technology. The newly enhanced X-Data Portal has, therefore, been equipped with market-focused features that will complement the NSE website and other NSE portals in response to stakeholders’ increased demand for easy access to data.”
Building on the foundation of the first version, the X-DataPortal provides users with responsive layout and user-friendly navigation. Users would also have easy and quick access to downloadable market data, reports, and historical data to aid informed decision making; customised reports on request; instant purchase of market data within the portal; easy tracking of all subscribed reports; and free access to seven days historical price data and top 10 brokers’ performance report. All these were designed to deliver value to stakeholders across the capital market value chain.
Speaking further, the Head, Trading Business, NSE, Jude Chiemeka, said: “At the NSE, we recognise that data fuels every aspect of the trading process. We are, therefore, pleased to introduce the improved X-Data Portal that will serve as a principal source for brokers, fund managers, research analysts, other professionals and non-professional participants like students and investors to get quality real-time and reference data reports for analysis, research and reporting purposes.”
According to him, the X-Data Portal equips fund managers and brokers with the data they need to formulate investment strategies or identify opportunities for arbitrage, thereby minimising risk and maximising value for their portfolios.
“For dealing member firms, academic institutions and other users, the accurate source of historical and real-time data the X-Data Portal provides leads to high quality research and superior trading decisions which can help to reinforce client relationships and generate revenue,” he said.