Nigerian Stock Index Hits 20-Year High, Boosted by President Tinubu's Reforms - Daba
1 min Read September 5, 2023 at 1:47 PM UTC
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Highlights
- Nigerian stocks rose to a more than 20-year high on Monday owing to positive sentiments over new President Bola Tinubu’s reforms and after the government mooted joining the G20 bloc of major economies.
- The All Share Index (NGX ASI) climbed 1.1% to close at 68,279.14 points, taking gains this year to 31.76% and surpassing a 2008 peak of 66,286.58 points.
- Sentiment has improved on the bourse after Tinubu initiated Nigeria’s boldest reforms in decades aimed at attracting foreign investors who fled due to currency controls introduced in 2016—to tackle shocks caused by previously low oil prices.
Source: Zawya
Our Takeaway
Between May 29 and August 31, the NGX ASI surged by a remarkable 19.33%, reaching a historic high of 66,548.99 points, above its previous record set in March 2008. Several factors have contributed to this positive performance, including the removal of fuel subsidies, the relaxation of foreign exchange restrictions, and a reduction in interest rates. Additionally, investor sentiment has been buoyed by optimism surrounding President Tinubu’s economic policies. Analysts remain bullish on Nigerian equities, which promise some of the highest dividend yields and remain cheaper than emerging market peers on a price-to-earnings ratio basis.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
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