Nigerian stocks have recorded an exceptional run of gains this year, with yield already as high as 40 per cent even when the first quarter is not yet over.
The performance owes its debt to a boom in local participation in the market, which has helped to tone down the adverse impact that a slide in foreign portfolio investment, once the lifeblood of the market, would have had on equities.
In the general run of things, interest rate hikes cause share prices to fall as investment funds tend to gravitate towards fixed income assets, whose yields often rise in such cases.
