30 July 2012

Nigeria: NSE Launches Islamic Index Today

Lagos — Sequel to the signing of a memorandum of understanding (MoU) between the Nigerian Stock Exchange (NSE) and Lotus Capital Limited for the development and management of a certified Shari'ah compliant index, arrangements have been concluded for the launching of the index today.

The Islamic Equity Index known as the "NSE Lotus Islamic Index" (with the code NSE LII) will consist of companies in conformity with the principles of Shari'ah.

The NSE LII, which is the first index created to track the performance of Shari'ah compliant equities on the floor of the bourse, will increase the breadth of the market and create an important benchmark for investments as the alternative non-interest investment space widens.

Speaking about the launching, the exchange's project manager for the NSE LII launch, Mr. Osahon Aire, explained that investment instruments like Exchange Traded Funds (ETFs) can be built on the Index which investors with a preference for ethical/Shari'ah compliant investments can invest in. He added that the launching will tactically aid the development of the market.

Osahon said: "The NSE Lotus Islamic Index would further illuminate the massive investment opportunities available to ethically minded investors, both in Nigeria and overseas.

"All the companies that would appear on the Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognized Shari'ah Advisory Board comprising of renowned Islamic scholars."

He explained that the launching of the Index is an exciting development that is in line with the NSE's mandate of broadening and deepening the Nigerian capital market.

Lotus Capital was founded in June 2004 with the specific objective of meeting the investment needs of ethical individuals, businesses and organizations across West Africa. It is a full-service, halal investment management boutique specializing in Shari'ah compliant asset management, private wealth management advisory services and financial advisory services.

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