Asset Manager, Lotus Capital and the Nigerian Stock Exchange recently launched the NSE Lotus Islamic Index. The NSE Lotus Islamic index covers about 15 equities with a combined market capitalization of about N2.87 billion ($18 million). The index excludes banks and companies with a high level of debt, excessive leverage or stocks that are in conflict with Islamic principles.
According to the stock exchange, the new index is designed to attract ethical investors into Nigeria’s stock market, particularly those from the Middle East. The index is particularly weighted towards the fast moving consumer good segment.
According to industry analysts, Islamic banking assets globally now exceed $1 trillion and could reach $4 trillion by 2020.
For more investment news on Lotus Capital, check out CNN Interview: Does Islamic finance…appeal to Christians as well? [Face Time with Hajara Adeola, MD Lotus Capital]