Nigerian Stock Market outperforms Kenya, South Africa and Ghana bourses, makes highest profits in June 2017

shakirudeen taiwo

July 19, 2017 1:43 PM

Analysts noted that the stability of the macroeconomics, improved sentiments by investors, forex market liquidity and absence of unexpected changes in the MPC policy may hold the trend.

NSE

The Nigerian Stock Exchange’s performance has been noted to be far ahead of its peers in the African continent.

As at Friday, July 14, 2017, the Lagos bourse’s All Share Index (ASI) gained 23.77% (YTD) compared with 14.33%, 2.34% and 5.81% for Nairobi, Ghana and Johannesburg bourses respectively. This performance was adduced to the positive impacts of foreign exchange policies of the Central Bank of Nigeria (CBN) and changes in other economic fundamentals.

According to Analysts from the FBNQuest, “Lagos is well ahead of both Nairobi (NSE 20) and Johannesburg (all-share)”.

The NSE ASI also gained 2.47% in last week trading as investors continued their return back to the market due to Nigeria‘s positive economic outlook and expectations of improving corporate earnings.

A similar report by a team of researchers from the FSDH Merchant Bank puts the NSE at the top of the chart with a month-on-month (MoM) increase of 12.27%. The analysis is done on 16 selected stock markets across America, Europe, Africa and Asia.

The FTSE/JSE Africa All Share (South Africa) Index recorded the highest MoM loss of 3.64% among the capital markets considered by the FSDH team. The JSE was followed by CAC 40 Index (France) with a MoM depreciation of 3.08% and a YTD appreciation of 5.31%.

Other market Indexes analysed were the Dow Jones, Brazil stock market, Ghana, Japan Nikkei, China’s Shanghai Stock Exchange, Hong Kong among others.

On whether the NSE would maintain this performance, analysts noted that the stability of the macroeconomics, improved sentiments by investors, forex market liquidity and absence of unexpected changes in the MPC policy may hold the trend.

shakirudeen taiwo