Nigerian Stock Exchange Ranked biggest in Africa

The Ranking of all stock markets all over the world by S & P Dow Jones Indices has placed the Nigerian stock exchange among the five top capital markets in the universe. This is an indication that the Nigeria business environment is improving.

According to the S & P Dow Jones, the Lagos bourse in by 42 percent in 2017, placing the Nigerian Stock market in third position as the top performing capital market after Argentina and Turkey. The fourth and fifth positions were occupied by the stock market of Hong Kong and the United State.

The Argentina market rose to 73%, Hong Kong market soared to 35%, Turkey marked increased by 43% and the United States Market jumped to 25%

This performance enabled Nigeria bourse to close up the gap in the all share index from 2015 and 2016 losses. The losses suffered in 2016 and 2017 were as a result of reduction in global oil price as well as foreign exchange problems. The Niger delta unrest made the Nigerian Stock Exchange shield some values during those years.

A major role was played by the return of portfolio investors. The portfolio investors were able to return because of the establishment of Investors’ and Exporters’ Forex window. This was created by the federal government of Nigeria to help address the negative effects of capital market.

In addition, the ASI was further pushed upward in December 2017 as a result of Dangote cement deal that allows the transfer of 3 percent of the company stake to a new investor. Dangote Cement Company accounts for one-third of whole market capitalization of the Lagos state bourse.

The chief Executive Officer of Silk invest, ZinBekkali said that the Nigerian Stock exchange will maintain its present performance because of the relaxing Forex market pressure and rising global oil prices. He said further that the Nigerian market is one of the cheapest markets in the universe.

According to the report, the Qatari stock market emerged as the biggest loser of the year. The Qatari stock market shields 19 percent as a result of its Neighbor’s economic blockade.