Nigerian stocks have added 30.8 per cent this year, highlighting the resilience of the equities at a time when foreign inflows into the market remain markedly low, compared to pre-pandemic levels.
NGX 30, the index that tracks the 30 top companies on the Nigerian bourse by market value and liquidity, has itself returned 31.9 per cent year to date. It is now just a breath away from drawing level with Nigeria’s inflation, which is near its 30-year high.
“The equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the high interest rates in the fixed income and money markets, we expect some bearish undertone to persist in the equities market as fixed income biased investors take advantage of the high yields in the fixed income space,” analysts at United Capital said earlier in the week.
