The Nigerian Economy has increased its main equity index by 12 percent; highest its been for over eight years, making it the highest among the 96 stock exchange on the stock exchange listing.
With the 12 Percent rise in fourteen days, the Nigerian stocks are world’s best, as its been leading the world so far this year, having Dangote Cement Plc, controlled by Africa’s richest man, Aliko Dangote, and the largest company, positioned with a high record on the exchange.
Foreign investment declined in Nigeria following the 2014 decrease in oil price, leading the economy into recession. The economy picked in the last quarter of 2017 and with the International Monetary Fund projecting growth to accelerate to 2.1 percent in 2019.
Stocks have gained strongly in January 2018, extending previous year’s 43 percent rise. The rally has taken the index up 12.75 percent since the start of the year, a 0.20 percent increase from last friday 12.55 percent.
Analyst at the Nigerian stockbroker forecast that “the market remain net positive from now till March when earnings seasons begin as investors position for dividend yield and capital appreciation”.
However, a continued success of Africa’s biggest economy stocks is said to be dependent on rising prices of its main export -oil and the continued interest of investors to increase stakes in its stocks.
Investments looks promising for investors wanting more exposure to consumers in Africa and entry into the Nigeria particularly, with the Nigerian banking sector seeming the most promising at the moment.