TheCable

AFEX has partnered with the Chartered Institute of Stockbrokers (CIS) to enhance the commodities market.

A memorandum of understanding (MoU) was signed between the two organisations in Abuja on Tuesday.

AFEX, in a statement, said the two organisations aim at providing and disseminating knowledge on commodities among capital market players.

The statement added that a certificate-awarding institution would be created to produce certified commodity brokers and increase the activity of investors in the market.

Ayodeji Balogun, AFEX’s chief executive officer (CEO), said knowledge is imperative for the commodities market to thrive.

“As a commodities exchange and a capital market player, we are able to educate and raise knowledge about the commodities trading ecosystem among CIS members and other capital market participants,” Balogun said.

“Knowledge is a critical indicator of a thriving commodities exchange ecosystem.

AFEX and CIS are happy to be extending this vital resource of knowledge to the larger market through this partnership.

“We will leverage our combined experience and knowledge to equip CIS members and other participants in the capital market with the necessary tools to make sense of agricultural asset risks, local and international commodity market trends, and other underlying factors that drive movements in the market.”

On his part, Olatunde Amolegbe, CIS president, said the partnership would allow investors to diversify into commodities rather than the usual bonds and equities.

“We are glad for the solid footing AFEX has planted in the commodity market in Nigeria and the exciting opportunities ahead for the inclusion of commodities as an alternative asset class in the portfolio of the clients,” Amolegbe said.

“Prior to now, the focus in the capital market has been on equities, bonds, shares and stocks, but the ability to diversify client portfolios with an additional asset class such as commodities provides the needed diversification for the reduction of risks and can enhance returns.

“So, for us as professionals in this industry, partnering with AFEX was a given.”