Market capitalisation of Shariah-compliant stocks rises to N11.3trn

The Total market capitalization of Shariah-compliant stocks in the Nigerian Capital market now stands at over N11.3 trillion. Mr. Ndako Mijindadi, Head, Investment and Research, Lotus Capital Limited, disclosed this in a conversation on “Investing Through Islamic Finance Products and Index”.

In a report by Proshare, he observed that the Lotus Islamic Index was created in 2009, and the index was launched in collaboration with the Nigeria Exchange Limited (NGX) in 2012. The Index tracks the performance of a basket of selected Shari’ah-compliant equities listed on the NGX.

The Islamic finance expert stressed that all investments are usually permissible except expressly forbidden, and there was a growing diversity of investible instruments. He was of the view that Shariah-conscious investors, now have more investment options than in the past.

He added that asset managers have recognized the growing opportunities in Islamic finance and launched mutual funds with increasing specialization to cater to the unique needs of investors.

Speaking on principal considerations for investing in ethical assets, he explained that Shariah compliance was the cornerstone of investing, this was non-negotiable. Also, it was essential to understand the nature of the market-based instrument as it would involve ethical governance oversight.

Speaking on ways to engage in equity investment as a Muslim investor, he stressed the need for investors to follow the required methodology and ensure the company was not involved in businesses that were not permissible in the non-interest finance market or that were not Halal.

He also emphasized the need for ethical investors to look at the company by ensuring that their financial performance is managed in a way that is convenient for a non-interest investor.

Speaking on Sukuk investment fixed income, he said many broad investors are attracted to Sukuk Market due to its social impact, ethical preference, low-risk returns, liquidity, and Shariah compliance returns.