ADVERTISEMENT
ADVERTISEMENT

This country’s stocks is one of the worlds best performers in 4 months

Nigeria's stock has been one of the best performers in the world which is a first for the country in almost 5 years.

Bloomberg also reported that net foreign inflows to Nigerian equities totaled N337 billion ($940 million) in 2017 and this is the first time flows have been positive since at least 2013.

It said December 2017 was the best month since Bloomberg started compiling data at the beginning of 2014, with net inflows of N140 billion, signaling a switch in sentiment toward equities in Africa’s biggest oil producer.

The Bloomberg report stated that “Nigerian equities have gained in allure for international traders, thanks to the rise in Brent crude prices to around 70 dollars a barrel and an easing of dollar shortages, which are helping Africa’s largest economy recover from its worst slump in 25 years.”

ADVERTISEMENT

“They’re also attracted by what remains among the cheapest valuations on the continent. The turnaround has seen investors pile into the New York-based Global X MSCI Nigeria ETF this year, too. “That’s increased the exchange-traded funds market capitalization to almost $100 million, triple the size of a year ago.”

The world-beating rally in Nigerian stocks might not be over yet, noting that the main equity index in Africa’s biggest economy had surged 12% in the first two weeks this year in dollar terms, the most among 96 major bourses tracked by Bloomberg, pushing it to the highest level since 2008.

It said the advance would probably be sustained thanks to rising prices for oil, Nigeria’s main export, and as investors look to increase their holdings of what remained among the cheapest stocks in Africa.

“Still, there are some warning signs. The 120-day correlation between Nigerian stocks and Brent crude is now around the highest in two years. If oil prices reverse their 45% climb since June, Nigerian assets could take a hit.”

ADVERTISEMENT

It warned, however, that Nigeria’s multiple exchange rate systems were likely to remain a key drag, keeping long-term investors on the sidelines.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT