The rating of all stock markets across the globe by S&P Dow Jones Indices has put Nigerian Stock Exchange (NSE) as one of the 5 best capital markets in the world.
According to the rating body, the Lagos bourse grew by 42% in 2017. Thus, making the NSE third-best performing capital market after Argentina and Turkey. Stock markets of Hong Kong and the United States occupied fourth and fifth position to complete the top five for 2017.
The Argentinian market soared 73%, Turkey jumped up by 43%, Hong Kong grew by 35% and the United States stock market increased by 25%.
With this performance, the Nigerian bourse was able to close gap in the All-Share index (ASI) from losses suffered in 2015 and 2016. These losses result from decline in global oil price, foreign exchange problem and Niger Delta crisis made the NSE to shield some value in these years.
The return of portfolio investors to the market also played major role this results by NSE in 2017. This return was made possible by creation of Investors’ and Exporters (I&E) forex window by CBN, thus, helping to address the negative impacts of capital control by the apex bank.
Also, Dangote cement deal which saw the transfer of 3% of the company stakes to a new investor in December 2017 further push the ASI upward. This is as the company accounts for one-third of the total market capitalisation of the Lagos bourse.
Zin Bekkali, Chief Executive Officer of Silk Invest stated that the NSE will maintain its current performance due to rising global oil prices and relaxing forex market pressure.
“If you look at where we stand today, the [Nigerian] market is still one of the cheapest markets on the planet,” said Bekkali.
The report said the Qatari stock market emerged the biggest loser of the year. It shields 19% which was occasioned by the economic blockade by its neighbours: Saudi Arabia, Bahrain and the United Arab Emirates.