Nigerian equities are beating all peers in the Europe, Middle East and Africa region in 2024 as pension funds and institutional investors pile into stocks on expectations of record profits from lenders booking revaluation gains on their foreign-exchange positions.

The 151-member NGX All-Share Index is up 11% this year in local currency, trailing only Argentina globally. The NGX has advanced almost 60% in the past year. That compares with a less than 2% advance for the MSCI Emerging Markets EMEA Index over the same period.

Banking stocks have driven gains, with the banking index up 16% this year and nearly 140% over the past 12 months. The holding company that owns Access Bank PLC is up 21% so far in 2024, while Zenith Bank PLC is up 12% and Guaranty Trust Holding Co. is up 14%. The banking index trades at a price-to-estimated earnings ratio of 2.24 times.

Dividend Order

Significant profits from the devaluation in the naira are making banks in Africa’s most populous country attractive for investors, said Ayodele Salami, chief investment officer for UK-based Emerging Markets Investment Management Ltd.

“Although the CBN has instructed the banks not to use these gains to pay dividends, it is likely that some of these gains will eventually be passed to shareholders, maybe via bonus issues,” Salami said, using the initial for the central bank.

Zenith, Nigeria’s biggest lender, booked 355.6 billion naira ($372 million) of foreign-exchange gains, more than doubling profits in the nine months to September. UBA Plc similarly raised profits by more than 300% to a record 502 billion nairas in the same period.

Negative Yields

Negative real yields on the nation’s fixed-income securities have also made equities relatively more attractive in the country. The Central Bank of Nigeria sold one-year treasury bills this week at a yield of 8.4%, which is less than a third of the inflation rate of 28.2% in November, an 18-year high.

Local institutional investors including pension funds are increasing investments in equities to boost income since they offer positive returns relative to inflation, Usoro Essien, head of research at RMB Nigeria Stockbrokers, said by phone.

“A dearth of alternative investment options and asset classes” is shifting interest to equities, Essien said. “PFAs appear to have started taking longer-term views on equity investment so I don’t expect a severe price correction.”

Nigerian lenders are due to release 2023 financial reports and dividend plans from next month.

junketer:
This thing you dey show us, will it reduce the price of petrol or hide the fact that tinubu is worse than buhari or the fact that foreign companies dey run away from Nigeria? Abegiii

BloomingDale:
I just pity anyone putting money in there.

LegendHero:


Why are you pitying them?

LegendHero:


If one don't work smartly, one will continue to be broke.

--In 1960, we have rich and poor men
--In 1980, we have destitute and broke men
--in 2000, we have poor and rich people
--in 2024, we have poor folks and rich folks

It is good to come online to complain daily but if one don't hustle, no government will come and make you a millionaire just because you are a citizen. Na like this ona go complain for next president too because the poor always look for excuse for their failure.

It's kuku not as if you are a millionaire in 2015 and Tinubu suddenly turned you to a beggar in just 6months that he is in power.

Brendaniel:


Oga you are right, but why then did you run to America if you could equally stay in Nigeria and do all what you are saying to people in Nigeria?

LegendHero:
Nigerian equities are beating all peers in the Europe, Middle East and Africa region in 2024 as pension funds and institutional investors pile into stocks on expectations of record profits from lenders booking revaluation gains on their foreign-exchange positions.

The 151-member NGX All-Share Index is up 11% this year in local currency, trailing only Argentina globally. The NGX has advanced almost 60% in the past year. That compares with a less than 2% advance for the MSCI Emerging Markets EMEA Index over the same period.

Banking stocks have driven gains, with the banking index up 16% this year and nearly 140% over the past 12 months. The holding company that owns Access Bank PLC is up 21% so far in 2024, while Zenith Bank PLC is up 12% and Guaranty Trust Holding Co. is up 14%. The banking index trades at a price-to-estimated earnings ratio of 2.24 times.

https://www.bloomberg.com/news/articles/2024-01-12/banks-lead-nigerian-stocks-to-world-s-second-best-gains-in-2024

LegendHero:


Being in America is not the only prerequisite for being rich. We have rich people in Nigeria who are living large and enjoying life.

Nigerians have been migrating abroad since 1900. I don't think that should be an issue or that should negate my opinion about Nigeria generally.

DMerciful:
Always supporting middle eastern countries to defeat US but run to the US and not middle East.

Ran after supporting the unlimited continued failure of APC

DMerciful:
Focusing on things that has little impact to the vast majority of Nigerians.

Tinubu aka Lamidi Amoda Sangodele aka certificate forger, mandate thief and narcotics trafficker is a confirmed failure

LegendHero:


Being in America is not the only prerequisite for being rich. We have rich people in Nigeria who are living large and enjoying life.

Nigerians have been migrating abroad since 1900. I don't think that should be an issue or that should negate my opinion about Nigeria generally.

Brendaniel:


And that is why I am telling you to come to Nigeria to practice what you are preaching to people staying here to prove to them what you are saying...

You are in America hustling and blaming people for being broke in Nigeria, how do you want them to believe you if you are not also in Nigeria to prove to them your point?

LegendHero:


I am not blaming people for being broke, it is usually not in my character.

But my stomach turn when you guys only want to project bad side about Nigeria at every given opportunity. This thread is about how the Nigeria stock market perform greatly.

Then one of you came to start crying that companies are running out of Nigeria, leaving the main topic.

Then I told him that if he continues to depend on government everytime, he will remain stagnant as we’ve always have poor and rich people in Nigeria.

Then you suddenly came to center yourself and bring issue of USA. Then now gaslighting me about brokeshaming you.

Who tell you that everyone in USA is richer than their Nigeria counterpart? You sabi wetin I dey do for Naija before?

If one don't work smartly, one will continue to be broke.

--In 1960, we have rich and poor men
--In 1980, we have destitute and broke men
--in 2000, we have poor and rich people
--in 2024, we have poor folks and rich folks

It is good to come online to complain daily but if one don't hustle, no government will come and make you a millionaire just because you are a citizen. Na like this ona go complain for next president too because the poor always look for excuse for their failure.

It's kuku not as if you are a millionaire in 2015 and Tinubu suddenly turned you to a beggar in just 6months that he is in power.

Lol 😂 Yoruba Obedient don talk.

One thing that amaze me about all you kind of Yorubas is that no matter how much you lick Ibo people anus, they still won’t rate you.

So why pandering to them? Daily, Ibos open numerous thread to slander the Yoruba but you were visually impaired then but instead came online to open a thread to fight for your Ibo masters.

I’m sure after this, they will give you a title in Iboland as the chief Ohu of Abakaliki.

LegendHero:


Show me where I support USA destruction.

I am waiting. For the rest of your jargons, it deserves no reply.

DMerciful:
I said defeat in the middle East, you say destruction of the homeland. No country can destroy the homeland.

You guys were supporting Afghanistan, Syria, Iran etc against US troops

LegendHero:


https://www.bloomberg.com/news/articles/2024-01-12/banks-lead-nigerian-stocks-to-world-s-second-best-gains-in-2024

Brendaniel:


I want to take my time to answer all your points one after the other because your hypocrisy and lies are just on another level:

I am not blaming people for being broke, it is usually not in my character.

Read your comment below and ask yourself if all you said here is not broke shaming, and you are even claiming it is not in your character, in all my conversations with you all I have known as your defense is broke shaming, once someone complains about Nigeria the next thing is to insult and broke shame both the person and his generations.

You make it look like any person complaining about Nigeria is a poor person and that is why I am calling your hypocrisy on why you ran to America and not stay in Nigeria and work smart instead of broke shaming people and staying in America.




But my stomach turn when you guys only want to project bad side about Nigeria at every given opportunity. This thread is about how the Nigeria stock market perform greatly.

But your stomach doesn't turn when you stoke tribal hatred between Yorubas and Igbos at any slightest opportunity, so you tribal hatred is convenient for you because you feel you are not on the receiving end since your tribe is in power, so it is not because you want to project Nigeria in a good light or you are angry others are speaking out against the ills of the government, the only reason it turns your stomach is because your tribesman Tinubu is in power, so you get angry,

if tribal hatred against to your fellow Nigerian means nothing to you then you want us to believe that you love Nigeria. That comment below was your comment against your fellow Yoruba man who was preaching unity...



Then one of you came to start crying that companies are running out of Nigeria, leaving the main topic.

But did he lie, is he not saying the truth? So many companies have left Nigeria since Tinubu came onboard, he has every right to speak out, why do you want him to keep quiet?


Then I told him that if he continues to depend on government everytime, he will remain stagnant as we’ve always have poor and rich people in Nigeria.

Who told you those talking about how Tinubu and APC are delivering bad governance are waiting for the government, can Americans take quarter of the nonsense governance Tinubu and Buhari have offered Nigerians?

You want people to keep quiet and watch the country go down and not speak, what kind wicked and heartless people are you guys?

You stay in a country where there is 24 hours light, quick emergency service, good roads, clean water and so on, this is not about money, billionaires in Nigeria have died because of lack of basic services that ordinarily the government should provide, all their money at that time could not save them because government failed to put things in place, what even a pauper in America will get easily.


Then you suddenly came to center yourself and bring issue of USA. Then now gaslighting me about brokeshaming you.


Oga, you are the one gaslighting people with calling them broke once they speak about bad governance, I mean what does being broke have to do with someone calling out the goverment on terrible governance and mismanagement, I'm only calling out your hypocrisy, why not come and stay in Nigeria and enjoy all the good you are praising the government for?

Who tell you that everyone in USA is richer than their Nigeria counterpart? You sabi wetin I dey do for Naija before?

That takes me back to my answer above, I don't care what you were doing, but if you were doing so well why did you run away?

No one is saying that everyone in America is richer than those in Nigeria, what we are clamouring for is for the system to work for everyone regardless of their status, is that too much to ask for?

You that you are talking,if the Nigerian system was more favourable to whatever you were doing would you be in America today?