Stock Market: Stockbrokers advised on post-COVID-19 survival strategies

The Nigerian stock exchange
FI
Franklin Izuchukwu

Stockbrokers have been urged to enhance their skills and competencies as only operators who embrace proactive and innovative business strategy would succeed under the new normal.

Panellists at a recent Chartered Institute of Stockbrokers' Mandatory Continuous Professional Development (MCPD) webinar, titled "Opportunities for Stockbrokers: Post COVID-19 Pandemic," made the call.

The lead speaker and Divisional Head, Trading Business, Nigerian Stock Exchange (NSE), Mr Jude Chiemeka, said the operating environment has changed very dramatically in adjustment to the impact of COVID-19.

"The lockdown has resulted in a paradigm shift of what work should look like and the need for companies to re-invent their working models from this perspective.

To thrive in times like this, market intermediaries need to embrace more innovative and pro-active strategies to ride the wave", Chiemeka said..

He further added, "Stockbrokers have a role to play in deepening the products traded in the market by facilitating cross-listings of securities existing in other markets that help investors achieve their diversification and hedging needs, issuance of unsponsored Depository Receipts, currency tracking exchange-traded funds (ETFs), access to international markets such as technology and health care".

Also speaking, the Chief Executive Officer, Stanbic IBTC Nominees, Mr Akeem Oyewale, said:" Income stream of brokerage firms has become challenging as top ten dealing Member Firms primarily dominate the market.

There is a compelling need for shared resources and cost optimisation on the part of market operators. Demutualisation of the NSE is expected to present robust opportunities. We shall witness mergers and acquisitions.

We should be looking outside our shores for business opportunities. There are dormant products on the exchange, including collective investment scheme (CIS) and securities lending. These also present business opportunities."

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