The Nigerian Stock Exchange (NSE), now known as the Nigerian Exchange Group (NGX), is the primary platform for trading shares, bonds, and other securities in Nigeria.
If you are interested in trading at the NGX, here are key points to keep in mind:
1. Market Segments
The NGX operates several market segments:
Equities Market:Â For trading company shares.
Fixed Income Market: For bonds (including government and corporate bonds).
Exchange Traded Funds (ETFs): These are investment funds traded on the stock exchange, similar to stocks.
Growth Board: A platform for smaller and growing companies.
2. Trading Hours
Pre-open session: 9:30 AM – 10:00 AM (GMT+1)
Open session: 10:00 AM – 2:20 PM (GMT+1)
Post-close session: 2:20 PM – 2:30 PM (GMT+1)
3. How to Start Trading
Open a Brokerage Account: You need to engage a stockbroker licensed by the NGX to trade on your behalf. You can find a list of accredited brokers on the NGX website.
Funding the Account: After opening a brokerage account, you will need to deposit funds for trading.
Placing Orders: Once your account is funded, you can instruct your broker to buy or sell shares or other securities on the NGX.
4. Key Indices
NGX All-Share Index (ASI):Â Tracks the overall performance of the equities market.
Sectoral Indices: Focus on specific sectors like banking, insurance, oil & gas, etc.
5. Trading System
The NGX operates an automated trading system known as the X-Gen Trading Platform, providing real-time market data and enabling efficient trade execution.
6. Investment Opportunities
Blue-Chip Stocks: Shares of established companies like Dangote Cement, MTN Nigeria, Zenith Bank, and Guaranty Trust Bank.
Bonds and ETFs:Â Ideal for more conservative investors who prefer fixed returns.
7. Regulation
The market is regulated by the Securities and Exchange Commission (SEC) Nigeria, which ensures transparency and fair trading practices.
