Nigeria Stock Exchange

ABUJA – NIGERIA’S Lagos Stock Exchange (NSE) outshone the South African and Kenyan bourses over the past year in a development analysts attributed to political tensions in the latter two countries.

The Lagos all-share index (NSEASI) was among the best performing indices globally in 2017 in local currency unit terms, and surpassed the Nairobi Stock Exchange (NSE) and the Johannesburg Stock Exchange (JSE).

It gained 42,3 percent over the calendar year, compared with Johannesburg’s 17,5 percent and Nairobi’s 16,5 percent.

The Nigerian market in 2017 enjoyed a lift from improved macro data and newsflow.

The economy emerged from recession, oil production recovered from mid-year, reserves accumulation was impressive and the FGN successfully tapped the Eurobond market twice.

On the other hand, growth was slower in South Africa and Kenya, two countries characterised by crucial elections last year.

Kenya, East Africa’s biggest economy is reeling from contentious presidential polls that saw incumbent Uhuru Kenyatta retained.

Rival Raila Odinga has disputed the outcome. The Supreme Court annulled the results of the initial poll which Kenyatta had won but was marred by political violence.

Scores of civilians were killed after clashes with security forces.

In South Africa, an intense battle to succeed Jacob Zuma as head of the ruling African National Congress (ANC) heightened divisions within the party. Cyril Ramaphosa emerged as the new leader ahead of former African Union (AU) Commission chairperson, Nkosazana Dlamini-Zuma.

“Jo’burg enjoyed an uptick in December after Cyril Ramaphosa won the election for the ANC leadership whereas Nairobi took a hit from Kenya’s lengthy, re-run presidential elections,” First Bank Nigeria (FBN) Quest stated.

The market experts remained hopeful of comparatively smooth elections in Nigeria, Africa’s biggest economy, next year.

“In Nigeria’s run-up to elections in February 2019, we distinguish between ‘regular’ polls and those that are unsettling, challenged in the courts and so close as to create the risk of violence. Relatively smooth elections without ideological issues should not upset the market unduly,” FBN Quest stated.

– CAJ News