The main equity index in Africa’s biggest economy has surged 12 per cent this year in dollar terms, the most among 96 major bourses tracked by Bloomberg, pushing it to the highest level since 2008. Dangote Cement Plc, controlled by Africa’s richest man, Aliko Dangote, and the largest company on the bourse, has climbed to a record high.

The advance will probably be sustained thanks to rising prices for oil, Nigeria’s main export, and as investors look to increase their holdings of what remain among the cheapest stocks in Africa, according to the asset management arm of South African lender FirstRand Ltd.

“For investors wanting more exposure to consumers in Africa and Nigeria, in particular, the outlook is good,” said Paul Clark, a money manager in Johannesburg at Ashburton Investments, which owns Nigerian stocks including Seplat Petroleum Development Co. “The banking sector is probably the most attractive at the moment, especially the tier-2 lenders.”

Nigerian stocks are leading the world so far this year. Foreign investors have been crucial in driving the market higher. The New York-based Global X MSCI Nigeria ETF attracted record weekly net inflows through Thursday. That helped to increase the exchange-traded fund’s market capitalization to almost $90 million, double the level in May last year.

Even after the gains, Nigerian valuations are the cheapest among the major African equity indexes. Nigerian stocks trade at a forward price-to-earnings ratio of 10.2, while South Africa’s are at 14 and the MSCI Emerging Market Index is at 13.

That suggests there’s further upside, according to Cape Town-based fund Allan Gray. While foreign investors turned negative on Nigeria after following the 2014 oil crash and subsequent recession, the economy picked up last year and growth is forecast by the International Monetary Fund to accelerate to 2.1 percent in 2019.

“For long-term investors, Nigerian equities were a screaming bargain,” said Nick Ndiritu, co-manager of Allan Gray’s $389 million Africa equity fund, which doesn’t include South Africa. “Investor sentiment has turned more bullish on Nigeria and a re-rating of the Nigerian stock market is now underway.”

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 percent climb since June, Nigerian assets could take a hit.


That’s one reason HSBC Holdings Plc has a negative outlook on the stocks. The U.K. bank also says Nigeria will have to free its currency further if it wants to attract more investment. While the central bank eased some capital controls last year and opened a trading window for foreign portfolio traders, it continues to operate several exchange rates.

“Nigeria’s multiple exchange rate system is likely to remain a key drag, keeping long-term investors on the side lines,” HSBC analysts David Faulkner, John Lomax and Kishore Muktinutalapati said in a note on Jan. 11.

• Copyright Bloomberg

https://www.thisdaylive.com/index.php/2018/01/15/with-12-rise-in-fourteen-days-nigerian-stocks-are-worlds-best/

I trust the hate-filled organisms.

Several hate-induced impromptu Economists will now come up with their ogogoro, palm wine & jugunu analyses against this report.

Waiting to read shekpe joint interpretation.

Nice one, bubu is working.
IPob Now

Great. Unfortunately, nobody is talking about the huge success that we are recording in the stock market. Investors confidence in the economy is at an all time high and that is what is translating to our stock market becoming the best performing market in the world. Govt should fix the criminality of the herdsmen that is taking the shine out of the success that our economy is recording.

OfficialAwol:


Shut up you fool.

Who is the chairman of NSE. Is he a Fulani?

You guys must be very strong.
When it goes bad, it is Buhari.
When it goes good, it is the head of the parastatal.
Now, using same analogy, who heads CBN? Is he a Fulani man? Is CBN not the same organisation you lots compete among yourselves insulting for your so-called incompetence?
God must have spent extra time creating you guys.

LionDeLeo:
I trust the hate-filled organisms.

Several hate-induced impromptu Economists will now come up with their ogogoro, palm wine & jugunu analyses against this report.

Waiting to read shekpe joint interpretation.

Lol you're drunk off a 1 week performance in stock market. Talk after year end. As you probably know it was one of worst performing index in 2016. 2017 was good year though.

Blue3k:


Lol you're drunk off a 1 week performance in stock market. Talk after year end. As you probably know it was one of worst performing index in 2016. 2017 was good year though.

Seen.

Waiting for the next analysis.

This is a terrible development for the hate mongers.

LionDeLeo:

Seen.

Waiting for the next analysis.

Lol are u day trader or just cheerleader? Man you guys are funny in Nigeria. I'm pretty sure your not investor because you wouldnt be so excited. The gains recorded here are still less than inflation.

Please enjoy your gains if you made some though.

The best in just 14 days? Lol.... Is this how low our success bar has fallen?

Make una go read 1984 ooooo

We're getting thr

Check my signature to order your football jerseys and get FREE CUSTOMIZATION, YES you heard me right FREE CUSTOMIZATION... New year discount is still on

Some pple will still not c the hope in this news, they prefer to read killings in Benue so that they can observe their five times daily prayer, ish.

Comparatively, not that kemi is better than ngozi but one has a visionary leader.

Buhari is still useless.... Does he know what stock means and how it works...?.... Mtchew

Lol. Stock market thats is recovering from recession.

These kind of growth are expected from a recovering market. We had a higher growth rate and faster recovery during the 2008 - 2012 global depression.

we grew 33% in 2012. https://www.nairaland.com/4290352/nigeria-stock-market-grew-33

I pray the gains are sustain and it circulates till it reaches the common man's table.

Worryingly the 'stock' hasn't reduced the price of garri in the market.

We have carried world best in everything concerning Economy but still,Complete bodied Hausa alamajiri is still littered all over the place begging for food because of hardship. If you as a kid received more praise than your brothers on everything, check well, there is a problem with you, they are trying to remove inferiority complex from you when you compare yourself to them in future

OK nice

Yet there's suffering in the land

Good news coming from Nigeria after years of bad news

seunmsg:
Great. Unfortunately, nobody is talking about the huge success that we are recording in the stock market. Investors confidence in the economy is at an all time high and that is what is translating to our stock market becoming the best performing market in the world. Govt should fix the criminality of the herdsmen that is taking the shine out of the success that our economy is recording.

It's expected from a market that is recovering. Nothing to see here.

jnfoage:

You guys must be very strong.
When it goes bad, it is Buhari.
When it goes good, it is the head of the parastatal.
Now, using same analogy, who heads CBN? Is he a Fulani man? Is CBN not the same organisation you lots compete among yourselves insulting for your so-called incompetence?
God must have spent extra time creating you guys.

Nice one. The are blinded with hatred. They can't see anything positive

ipob swine will not have a pleasant week

sai BABA

LionDeLeo:
I trust the hate-filled organisms.

Several hate-induced impromptu Economists will now come up with their ogogoro, palm wine & jugunu analyses against this report.

Waiting to read shekpe joint interpretation.

It is not about being hate induced. The question you should be asking is; how does this news translate into improving the lives of the average Nigerian. What is better than stocks and bonds? I'll tell you. Oil is better than stocks and bonds and Nigeria has plenty of it. How has this precious Natural resource improved the lives of Nigerians? The core problem that Nigerians should be focused on they are ignoring and until that is fixed, even if the streets of Nigeria is paved with gold, Nigerians can never have the standard of living they want.

Nigerian stock is fraud. A manipulated and inflated stock prices to deceive gullible investors.