Even as data revealed that "Nigeria" Africa's biggest economy is in danger of a recession. Nigerian stocks today entered a bull market (a market in which share prices are rising, encouraging buying) as investors bought equities in anticipation of a currency devaluation that would boost share prices.

According to Bloomberg, The Nigerian Stock Exchange All Share Index closed at 27,129.41 on Friday, more than 20 percent above a three-year-low in mid-January. The measure fell for the first time in four days on Monday, dropping 0.6 percent to 26,978.6 by 12:21 p.m. in Lagos, remaining in bull-market territory.


The bourse has gained 7.7 percent this month, compared with a 6 percent loss for the MSCI Emerging Markets Index, after President Muhammadu Buhari signed a record budget in early May to stimulate Africa’s biggest economy and officials hinted at a devaluation, according to Chapel Hill Denham Securities Ltd. On Friday, after the market closed, data showed that Nigeria’s economy contracted in the first quarter for the first time since 2004, surprising analysts in a Bloomberg survey.

“Nobody really expected a contraction,” Tajudeen Ibrahim, head of equity research at Chapel Hill, said by phone from Lagos. “It came as a shock and the market’s responding to that” on Monday, he said. “Beforehand, local investors were responding positively to news of the budget and in anticipation that there would be a move on the currency.”

The Abuja-based central bank’s Monetary Policy Committee will make its next decision on interest rates on Tuesday afternoon. Despite the weak economy, inflation at around a six-year high of 13.7 percent will force it to raise the policy rate of 12 percent by between 50 and 250 basis

Read more at http://www.duketundesblog.com/2016/05/breaking-news-nigerias-stocks-enter.html#4fJsz2OxgRqtWh1O.99

I pray that all areas of positivity should come out as a shock to the waillers for the betterment of our nation in Jesus name..every thing will fall in place naturally nd not some artificial twist to Favour the actors while the masses continue in there worst to be there best...

Buharinomics is working. Zombies show some love.

Tell me say na GEJ cause am, make Amadioah come down to earth come fire you.

Duketunde we no go visit your blog

Where is the finance minister

END TIME

Why I support President Buhari on exchange policy

Many times my late father used to take a position on national matters which I did not understand. I used to spend long hours arguing with him on economic and tribal matters but he would simply stand his ground and be officious which was very annoying.

I had just returned from England full of ideas and I wanted to improve his business for him. This old man had sent his children overseas to study and he simply refused to allow us to practice what we learnt. He was happy to allow us to run the business but there were some "no go areas" which I did not understand.

After watching Nigeria for over 25 years and seeing the "boom bust" cycle happen twice, I now have a better understanding of third world economics and politics. I am now very weary of international agencies like IMF, World Bank and all these high sounding economists on CNN who prescribe policies like road side medicine peddlers who sell "cure all" medicines for all diseases.

I definitely agree with President Buhari PMB that devaluation of the Naira will only bring hardship upon all Nigerians and it will not solve the problem at hand. Any devaluation will only make a few richer and the masses poorer.

Engineers and Scientists follow an exact science. When they advise you on certain steps in a sequence it is possible to predict the outcome in a deliberate way. An Aeroplane will always take off and land with such certainty that we are willing to take the risk of flying even for holidays. The same thing applies in the medical field. Engineers and Scientists are all able to prove what will NOT happen with some accuracy and they will back up their position with data and research.

Unfortunately Social Scientist and Economists are not in the same business. They are busy peddling their trade of faulty medication all over the market place without fear of reproach. They occupy all the news media like CNN, BBC , CNBC etc and spend hours analyzing and advising people, companies and countries on economic policy and even political policy. They are quick to advice on Syria and Iran but when it fails they simply move to another topic without anybody calling they to order.

They are also quick to advise Egypt and Nigeria on currency Managment but nobody notices how they have failed.

Egypt is now suffering from this misdirected policy while Nigeria was saved this embarrassment by the steadfastness of our own PMB. Please read the article below.

http://www.reuters.com/article/us-egypt-dollars-blackmarket-idUSKCN0XI1W9

It is likely that a wise president would have posed the following questions in the event of devaluation :

1. Will Organised labour ask for an increase commensurate to the inflation figures... ? Yes
2. Will it increase production and export? Definitely but not in the near term.
3. What is the predicted gap between the parallel rate and the official rate after devaluation to say N280 to the dollar? (No one knows)
4. Have the prices of goods and services doubled since the parallel rate has practically doubled? (NO)
5. Will the prices of goods and services double once we devalue to N280 officially? (definitely)
6. Will it cause widespread inflation? No Brainer.

PMB said on Thursday that he is not convinced that devaluation will solve our problem. This article reinforces his position.

Where devaluation is not matched with increased supply of dollar on a "willing seller willing buyer" basis, in my opinion will not solve the problem. Therefore we should avoid it unless we are sure devaluation will increase dollar supply. It will only increase poverty for already the impoverished Nigerian.

Yes it a well known economic principle that devaluation encourages export. But in the short term, there is nothing to export. The few exporters we have already bring their export proceeds through the back door and sell on black market anyway. Besides as my father said Nigeria already suffers from some cultural and structural defects that can not be fixed by international economic "Dictaks" alone.

If devaluation brings this difficult outcome for Egypt, it will surely be worse for Nigeria as we are NOT structurally diversified as Egypt. We are far more import dependent than Egypt.

Another proponent of devaluation are the state governments who think they will benefit if we devalue, thinking they will have more naira to pay salary and provide social services. But I think it will short lived . The resulting inflation will wipe out the benefit in no time.

I support PMB on devaluation. Perhaps we should take our time to observe the patient before taking the surgeon's knife to start an operation where we are unsure of the final outcome.

Perhaps creating a third tier interbank rate that allows people to inflow funds to settle expenses ,credit cards bills, school fees etc will reduce the pressure on the roadside market. But the transactions should be subject to international rules and anti money laundering AML rules. Spending money on Amazon, Konga, and other online purchases up to a limit depending on the category of customer . A limit of $500 per week up to a maximum of $4,000 per annum will definitely be enough for many young people and it will prevent people from buying cash on the road side to pay international fees ACCA annual dues etc. This will greatly reduce the pressure on the currency for now and it will satisfy the majority of normal people who do millions of simple transactions daily. It will also allow many people to remit funds to Nigeria for their family and friends.

Copied.

So there's no economist in Nigeria that can just forcefully impose help on Buhari?





and Kemi Adeosun with her lubricated mouth can only come out to tell us about ghost workers and how much has been saved through TSA.

Another fat terrible lie

Aye

Yawns!

Ok, we don hear

Investors are buying with hope that things will normalize soon and then their profit will boom. Hope their calculations are right, because if not, it won't be good for some people.

Anyway, that's the difference between the rich and the poor. The rich takes calculated risks, while the poor will stay and observe.

Tongues out

Wish Nigeria well

I actually thought I saw "bullshit".......I don dey old o

Ehen...na mistake?

Propaganda week

All these negative indexes coming through will only affect the masses and not the political classes that's why the people in leadership positions are not concerned. Their children will continue to have the best of education outside Nigeria, they will continue to have quality foods on their tables, their cars will always be fuelled and some people are here jumping up and down, killing themselves because of these people that lack visions, intellectual capacity, and innovations to lead.

Dem don start again dis mornin











Dis ppl can lie for Africa

kikikikiki our native doctors and witches are working.

Economic sense, buy shares when stocks are down and people are willing to sell at cut down prices then patiently wait for the boom time to come damn it you are a millionaire by selling it at cut neck (high Price). I hope I am right

ever811:
I pray that all areas of positivity should come out as a shock to the waillers for the betterment of our nation in Jesus name..every thing will fall in place naturally nd not some artificial twist to Favour the actors while the masses continue in there worst to be there best...

prayer doesn't work economy my brother, if not all the prayers since I was born is enough to make Nigeria world most powerful economy.. Baba should work abeg..

The source though

let it be as you wish it to be.

hope it's not artificial rising that will later return to it place. lol :Phope it's not artificial rising that will later return to it place. lol

ever811:
I pray that all areas of positivity should come out as a shock to the waillers for the betterment of our nation in Jesus name..every thing will fall in place naturally nd not some artificial twist to Favour the actors while the masses continue in there worst to be there best...

is it you or I that does not understand d write up?

it says investors are buying with hope that things will get bter for them, not as if things are already better or getting better.

steadymind:
Why I support President Buhari on exchange policy

Many times my late father used to take a position on national matters which I did not understand. I used to spend long hours arguing with him on economic and tribal matters but he would simply stand his ground and be officious which was very annoying.

I had just returned from England full of ideas and I wanted to improve his business for him. This old man had sent his children overseas to study and he simply refused to allow us to practice what we learnt. He was happy to allow us to run the business but there were some "no go areas" which I did not understand.

After watching Nigeria for over 25 years and seeing the "boom bust" cycle happen twice, I now have a better understanding of third world economics and politics. I am now very weary of international agencies like IMF, World Bank and all these high sounding economists on CNN who prescribe policies like road side medicine peddlers who sell "cure all" medicines for all diseases.

I definitely agree with President Buhari PMB that devaluation of the Naira will only bring hardship upon all Nigerians and it will not solve the problem at hand. Any devaluation will only make a few richer and the masses poorer.

Engineers and Scientists follow an exact science. When they advise you on certain steps in a sequence it is possible to predict the outcome in a deliberate way. An Aeroplane will always take off and land with such certainty that we are willing to take the risk of flying even for holidays. The same thing applies in the medical field. Engineers and Scientists are all able to prove what will NOT happen with some accuracy and they will back up their position with data and research.

Unfortunately Social Scientist and Economists are not in the same business. They are busy peddling their trade of faulty medication all over the market place without fear of reproach. They occupy all the news media like CNN, BBC , CNBC etc and spend hours analyzing and advising people, companies and countries on economic policy and even political policy. They are quick to advice on Syria and Iran but when it fails they simply move to another topic without anybody calling they to order.

They are also quick to advise Egypt and Nigeria on currency Managment but nobody notices how they have failed.

Egypt is now suffering from this misdirected policy while Nigeria was saved this embarrassment by the steadfastness of our own PMB. Please read the article below.

http://www.reuters.com/article/us-egypt-dollars-blackmarket-idUSKCN0XI1W9

It is likely that a wise president would have posed the following questions in the event of devaluation :

1. Will Organised labour ask for an increase commensurate to the inflation figures... ? Yes
2. Will it increase production and export? Definitely but not in the near term.
3. What is the predicted gap between the parallel rate and the official rate after devaluation to say N280 to the dollar? (No one knows)
4. Have the prices of goods and services doubled since the parallel rate has practically doubled? (NO)
5. Will the prices of goods and services double once we devalue to N280 officially? (definitely)
6. Will it cause widespread inflation? No Brainer.

PMB said on Thursday that he is not convinced that devaluation will solve our problem. This article reinforces his position.

Where devaluation is not matched with increased supply of dollar on a "willing seller willing buyer" basis, in my opinion will not solve the problem. Therefore we should avoid it unless we are sure devaluation will increase dollar supply. It will only increase poverty for already the impoverished Nigerian.

Yes it a well known economic principle that devaluation encourages export. But in the short term, there is nothing to export. The few exporters we have already bring their export proceeds through the back door and sell on black market anyway. Besides as my father said Nigeria already suffers from some cultural and structural defects that can not be fixed by international economic "Dictaks" alone.

If devaluation brings this difficult outcome for Egypt, it will surely be worse for Nigeria as we are NOT structurally diversified as Egypt. We are far more import dependent than Egypt.

Another proponent of devaluation are the state governments who think they will benefit if we devalue, thinking they will have more naira to pay salary and provide social services. But I think it will short lived . The resulting inflation will wipe out the benefit in no time.

I support PMB on devaluation. Perhaps we should take our time to observe the patient before taking the surgeon's knife to start an operation where we are unsure of the final outcome.

Perhaps creating a third tier interbank rate that allows people to inflow funds to settle expenses ,credit cards bills, school fees etc will reduce the pressure on the roadside market. But the transactions should be subject to international rules and anti money laundering AML rules. Spending money on Amazon, Konga, and other online purchases up to a limit depending on the category of customer . A limit of $500 per week up to a maximum of $4,000 per annum will definitely be enough for many young people and it will prevent people from buying cash on the road side to pay international fees ACCA annual dues etc. This will greatly reduce the pressure on the currency for now and it will satisfy the majority of normal people who do millions of simple transactions daily. It will also allow many people to remit funds to Nigeria for their family and friends.

Copied.

would there be a constructive counter argument to this?
If not, we will need to support the present Government with prayers and exercise patience while we do that.


It is NOT about "WANTING" a Government to FAIL for whatsoever reason, those who are into this should PONDER and consider the EFFECT of the present Government's failure, more than 100 Million Nigerians will suffer more than we are experiencing now. Nobody prays for that

Dabigbroda:
Where is the finance minister

working #livehappy

AYe

God just so much love Nigeria.

Let us all just join hands together to make things get better.

God bless us all.

I know this is another report to reduce panic among the populace so as to discourage panic withdrawals.