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  • Business - Market Data
  • Updated: June 13, 2023

Emefiele's Suspension Boosts Stock Market To 15-Year High

Emefiele's Suspension Boosts Stock Market To 15-Year High

Governor Godwin Emefiele

Following the suspension of the Central Bank Governor, Godwin Emefiele, the Nigerian stock market reached its highest level since July 2008.

Investors anticipate currency devaluation, leading the Nigerian Exchange index to surpass 57,437 points.

This year, Nigerian stocks gained 11.8%, outperforming MSCI's emerging equity benchmark.

The market rally, coupled with increased gains on Nigerian dollar bonds, reflects optimism surrounding the policy signals from newly elected President Bola Tinubu.

The head of research at Chapel Hill Denham, Tajudeen Ibrahim, stated, “An improvement in the economy will enhance the performance of companies operating in the market.”

Since resuming office, the new president has scrapped fuel subsidies and recently suspended the apex bank’s governor, Emefiele.

The NGX Banking Index has since risen by 8.5 per cent to 570.64, its biggest advance in more than eight years.

Ibrahim, added, “The exchange rate convergence is expected to lead to improvement in liquidity in the foreign currency market and will increase trading activities for the banks.”

Meanwhile, pressure is mounting on the naira to fall towards its market value.

The currency has fallen to 474 per dollar, with traders betting on further depreciation.
 

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