Nigeria, S’Africa, Kenya, Plan More ETF Cross-Listings | Independent Newspapers Limited
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Nigeria, S’Africa, Kenya, Plan More ETF Cross-Listings

Posted: May 19, 2015 at 2:00 am   /   by   /   comments (0)

By Sola Alabadan,  Lagos 


Nigeria, South Africa, and Kenya are planning to cross-list more exchange-traded funds (ETFs) on their stock markets to boost liquidity of the securities, Tamsin Freemantle, business development manager of the Johannesburg Stock Exchange (JSE) has disclosed.

This proposed cross-listing of ETFs will involve the leading exchanges in sub-Saharan Africa as the JSE is the biggest exchange in the region by market value, while Nigeria is third and Kenya is fourth.

While Johannesburg-based Absa Capital, a unit of Barclays Africa Group Ltd., had listed its NewGold ETF on the Nigerian Stock Exchange in 2011, Nigeria has four ETFs, the JSE has 45.

However, the Nairobi Securities Exchange is awaiting regulatory approval to offer the asset class, Donald Ouma, head of market product and development, said.

The business development manager of the South African bourse stated that “We reached out to East Africa and West Africa. The JSE is working closely with those markets to develop this cross listing.”

African exchanges are looking to increase cooperation as companies from Nigeria to Botswana list their shares on other bourses.

The JSE, with a market value of 10.7 trillion rand ($902 billion), has rallied 8.9 percent this year in the best performance after Botswana among 14 sub-Saharan exchanges. Nigeria’s main index has dropped 0.6 percent, while the Nairobi all-share measure is up 3 percent.

Ouma added that “Once we have the ETF framework, we will be ready to have the gold and platinum ETFs by Absa cross-listed in Nairobi.”

“In order to grow your markets you need more investors and in order to have more investors you need more things for them to invest in,” Freemantle further noted, stressing that “We need to actually step up and make sure we get that investor interest.”