The Nigerian Exchange Limited (NGX) has announced the listing of two new futures contracts for the NGX30 and NGX PENSION indices both of which will expire on 16 June 2023.
A futures contract, as an investment concept, allows an investor to speculate on the price of a financial instrument or commodity.
Normally, futures are used to hedge the price movement of an underlying asset to help prevent losses from unfavourable development in equities market, especially as it relates to price changes.
A statement on the listing of the two new futures contracts signed by the Head of Listings and Regulations Department of NGX Regulation Limited, Godstime Iwenekhai, clarified: “Trading License Holders and investing public are hereby notified of the listing of NGX30 INDEX and NGX PENSION INDEX Futures Contracts (expiring 16 June 2023) on Nigerian Exchange Limited (NGX) today, 12 December 2022.”
According to the NGX, the NGX30 Index contract (with symbol NGX30M3 and ISIN code NGNGX20INM36) is listed at a price of N1,836.25 per unit, while the NGX Pension Index contract (with the symbol NGXPENSIONM3 and ISIN code NGNGXPEINM37) is listed at a price of N1,782 per unit.
