[b] Optimism about the future of Africa's biggest economy hid a nadir in mid-February, when many Nigerian stocks were down double digits for 2015, and 10-year government bond yields spiked to more than 16 percent. Investors fretted over a potentially turbulent presidential election combined with low oil prices cutting into national income, a plummeting naira currency, and serious violence from Boko Haram religious extremists.

The calculus changed Tuesday when Nigeria—the world's seventh largest country by population and Africa's new economic powerhouse—succeeded in its first democratic transfer of power from one party to another.
Muhammadu Buhari, a former general, defeated incumbent president Goodluck Jonathan in largely peaceful voting. The successful election sent markets soaring: The Global X MSCI Nigeria ETF—which reflects locally traded shares like Nigerian Breweries, Guaranty Trust Bank, Nestle Nigeria and Dangote Cement—gained nearly 14 percent. Yields on 10-year bonds fell from nearly 15 percent to 13.8 percent April 1, according to FactSet data.

"The market has spoken," said Ashley Bendell, head of U.S. distribution for African Alliance, an investment bank with offices in 12 countries on the continent. "This was a momentous event for the country, and we can expect to see near term fund flows."

The question now is whether investors will keep adding to their positions.

"The optimism is definitely a result of the mitigation of near-term political risk," said Christine Phillpotts, a research analyst AllianceBernstein who focuses on African equities. "In the medium term, the market will pretty quickly focus back on the significant economic challenges the country still has."

Stocks have made back most of their losses this year, but they are still down from highs in March, 2008.

Tim Drinkall, who leads investing for Morgan Stanley Investment Management's Frontier Emerging Markets Portfolio, said he remains cautious on Nigeria despite what he said was a positive election.

"Regardless of the election result, the country faces tightening fiscal and monetary policy due to the collapse in oil prices and the lack of savings over the past decade," Drinkall noted in an email. "The elections are now past, but tough decisions on the economy remain ahead."

Oil is by far Nigeria's most important export and prices have fallen more than 50 percent in the past year.

His Morgan Stanley fund portfolio includes three major Nigerian stocks as of Feb. 28: Guaranty Trust (a major African financial services player), Nigerian Breweries (a dominant regional beer maker owned by Heineken) and Zenith Bank (another large financial sector business).

While Nigeria is the largest economy in Africa, the country's financial markets are tiny. The market capitalization of the Nigerian Stock Exchange is about $60.9 billion; by comparison, it's $28 trillion for the New York Stock Exchange.

Another major risk to Nigeria remains a religiously radical, bloody insurgency in the north of the country.

Terror attacks by Islamic extremist group Boko Haram have threatened the country's stability for years and Buhari—himself a Muslim from northern Nigeria—was elected in large part to deal with the issue. About 50 percent of Nigeria's nearly 178 million people are Muslim; some 40 percent are Christian.

A reminder of the dangers of terrorism on the continent occurred Thursday in Kenya, where gunmen from Islamist militant group al Shabaab stormed a university campus, killing dozens of students and staff, according to[/b]

http://www.cnbc.com/id/102557791

[b] Optimism about the future of Africa's biggest economy hid a nadir in mid-February, when many Nigerian stocks were down double digits for 2015, and 10-year government bond yields spiked to more than 16 percent. Investors fretted over a potentially turbulent presidential election combined with low oil prices cutting into national income, a plummeting naira currency, and serious violence from Boko Haram religious extremists.

The calculus changed Tuesday when Nigeria—the world's seventh largest country by population and Africa's new economic powerhouse—succeeded in its first democratic transfer of power from one party to another.
Muhammadu Buhari, a former general, defeated incumbent president Goodluck Jonathan in largely peaceful voting. The successful election sent markets soaring: The Global X MSCI Nigeria ETF—which reflects locally traded shares like Nigerian Breweries, Guaranty Trust Bank, Nestle Nigeria and Dangote Cement—gained nearly 14 percent. Yields on 10-year bonds fell from nearly 15 percent to 13.8 percent April 1, according to FactSet data.

"The market has spoken," said Ashley Bendell, head of U.S. distribution for African Alliance, an investment bank with offices in 12 countries on the continent. "This was a momentous event for the country, and we can expect to see near term fund flows."

The question now is whether investors will keep adding to their positions.

"The optimism is definitely a result of the mitigation of near-term political risk," said Christine Phillpotts, a research analyst AllianceBernstein who focuses on African equities. "In the medium term, the market will pretty quickly focus back on the significant economic challenges the country still has."

Stocks have made back most of their losses this year, but they are still down from highs in March, 2008.

Tim Drinkall, who leads investing for Morgan Stanley Investment Management's Frontier Emerging Markets Portfolio, said he remains cautious on Nigeria despite what he said was a positive election.

"Regardless of the election result, the country faces tightening fiscal and monetary policy due to the collapse in oil prices and the lack of savings over the past decade," Drinkall noted in an email. "The elections are now past, but tough decisions on the economy remain ahead."

Oil is by far Nigeria's most important export and prices have fallen more than 50 percent in the past year.

His Morgan Stanley fund portfolio includes three major Nigerian stocks as of Feb. 28: Guaranty Trust (a major African financial services player), Nigerian Breweries (a dominant regional beer maker owned by Heineken) and Zenith Bank (another large financial sector business).

While Nigeria is the largest economy in Africa, the country's financial markets are tiny. The market capitalization of the Nigerian Stock Exchange is about $60.9 billion; by comparison, it's $28 trillion for the New York Stock Exchange.

Another major risk to Nigeria remains a religiously radical, bloody insurgency in the north of the country.

Terror attacks by Islamic extremist group Boko Haram have threatened the country's stability for years and Buhari—himself a Muslim from northern Nigeria—was elected in large part to deal with the issue. About 50 percent of Nigeria's nearly 178 million people are Muslim; some 40 percent are Christian.

A reminder of the dangers of terrorism on the continent occurred Thursday in Kenya, where gunmen from Islamist militant group al Shabaab stormed a university campus, killing dozens of students and staff, according to[/b]

http://www.cnbc.com/id/102557791

[b]Lagos — The peaceful election over the weekend reflected on stock market yesterday when it recorded N178billion after going down on Friday.

The equities market closed yesterday on a positive note, as market capitalization appreciated by N178bn from N10.319 trillion it opened to close at N10.497 trillion during the first trading day after election.

Also, the Nigerian Stock Exchange All Share Index appreciated by 527.88 basis points represented 1.73 per cent to close at 31,090.81basis points, compared with the 1.63 per cent appreciation recorded previous Friday.

However, market turnover closes negative as volume declined by 58.75 per cent against 26.94 per cent decline recorded in the previous session. UBA Plc, FBN Holding Plc and Diamond Bank Plc were the most active to boost market turnover. FBN Holdings Plc and Guaranty Trust Bank Plc top market value list.

The NSE Banking Index records 2.76 per cent gain to emerge the most supportive sectoral index among others while the NSE Oil & Gas Index emerged as worst hit to close with 0.24 per cent.

Market breadth closed positive as Fidson Healthcare Plc led 40 gainers against 13 losers topped by Vono Product Plc at the end of the day trading which was an improved performance when compared with previous outlook.

Fidson Healthcare Plc appreciated by 9.12 per cent to close at N3.59 kobo per share, followed by Nigerian Aviation Handling Company Plc with 7.94 per cent gain to close at N5.44 kobo, while Eternal Plc grew by 7.75 per cent to close at N3.06 kobo per share. Also, Unilever Nigeria Plc rose by 7.24 per cent to close at N42.20 kobo per share and Trans Express Plc gained 6.31 per cent per share to close at N1.18 kobo.

On the other hand, Vono Product Plc depreciated by 48.60 per cent to close at N0.85 kobo per share. Forte Oil Plc followed with 5.01 per cent to close at N213.62 kobo per share while Cadbury Nigeria Plc loss 5.00 per cent to close at N37.27 kobo per share, Pharma Deko Plc with 4.91 per cent loss to close at N2.13 kobo per share and May & Baker Plc with 4.40 per cent loss to close at N1.52 kobo per share.
[/b]

http://allafrica.com/stories/201503311270.html

Joysmart:
Wow really?

Hello.

iterator24:
politics aside, its High time Nigerians become vigilant and wary of western propaganda . Some peeps don't care about APC /PDP..they want to bring you down! fact!

Boko Haram is knocking on your door. Your politicians are stealing all your money but its western media you are worried about? Nigeria is bound to fail!

Nigeria is doomed!! CNN reported on something that all Nigerians know and instead of the useless government to fix it they are calling the report satanic. Finger pointing and blame game is all they do. Nigeria is finished.