NGX mulls extension of trading hours

The Nigerian Exchange Limited (NGX) is considering a proposal to extend its daily trading hours, a move aimed at increasing market liquidity and aligning the exchange with global standards.

NGX CEO Jude Chiemeka announced the plan during a recent meeting with market operators, stating that a longer trading window is part of a strategy to internationalize the market and attract more foreign investment.

The current trading session, which runs from 9:30 a.m. to 2:30 p.m., may be extended to a longer 9:00 a.m. to 5:00 p.m. window.

Globally, major stock exchanges have longer trading sessions. The New York Stock Exchange, for instance, operates for six and a half hours, while the London Stock Exchange and other major European markets run for eight and a half hours. The Johannesburg Stock Exchange is even exploring the possibility of 24-hour trading. If implemented, NGX's proposed change would bring its trading hours in line with these international practices.

According to a senior dealing member at Wyoming Capital, Tajudeen Olayinka, this proposal has been discussed for years but is now gaining traction as a way to grow the market.

Chiemeka noted that the extended hours would support broader initiatives, such as the introduction of more tradable instruments and increased investor participation.

He also linked the move to the Federal Government's $1 trillion economy target, stating that preparing for these changes now is crucial.

The exchange is also collaborating with the International Finance Corporation (IFC) on Islamic finance and with the Ministry of Marine and Blue Economy on blue and social bonds.

NGX Head of Trading and Products, Abimbola Babalola, added that the exchange would continue to consult with stakeholders to ensure a smooth transition.