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
- 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.
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.
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