Nigerian stocks surged for a third straight day on Thursday, reaching their highest since September as local investors jumped on it following the abandonment of Naira’s fix rate on Monday.

The Nigerian Stock Exchange All Share index rose 3.1 percent to close at 31,071.25, its highest since September 30. The index has gained 8 percent in the past three days, leading 94 major equity indexes tracked by Bloomberg in gains.

“Volumes in the equity market have gone from about $8 million a day last week to more than $20 million,” Chris Becker, an analyst at Investec, said by phone from Johannesburg. “It’s a big increase, but it’s not all new foreign money coming in. A lot of the rally is down to local money being switched from the bond market to stocks.”

Yields on Naira government bonds have risen 40 basis points since the Central Bank of Nigeria floated the local currency, making it the second highest among 34 emerging markets.

However, the Naira dropped 0.5 percent to 284 against the US dollar as of 2:22 p.m. in Lagos, Nigeria. A situation currency analysts have attributed to low volume of trade in the foreign exchange market.

“So far, the new FX market has disappointed because there’s still very little liquidity, indicating that the exchange rate is not at a market-clearing level yet,” Becker said. “Other than the CBN, not many others are supplying dollars at these levels, suggesting the currency needs to weaken further. We think it’ll fall to around 300 over the next 12 months, but initially probably needs to weaken more than that.”

According to Mickael Avou Ahonzo, head of currency trading at Ecobank Transnational Inc., the liquidity is the problem, “foreign investors want to take positions, but the uncertainty of Naira stability due to low liquidity is holding them back, he said “its less about the level of the Naira than its stability and liquidity”.

“There’s enough liquidity for small trades, but not really for big transactions,” he added.

http://investorsking.com/nigerian-stocks-gain-most-in-the-world-even-as-liquidity-remain-low/

now people expect us to hail Buhari n the CBN Governor for this...... Forgetting that they are the reason why we are here in the first place...


.anyways better late than never...

I don't understand all this equity, liquidity, stock and so on. Who go teach me joor.

Kindly check my signature


Mr peter1994 no dey respect elders

Slow and steady, bits by bits.....

We'll get there. What the market needs now are foreign investors. That'll will go a long way to help the situation. At least now we know we are making progress.

God bless my country and I

OK.

I wish us well.
God bless Nigeria.

Noted!

ok

nairalands economists... pls come and do justice to this piece.

how

Especially with the UK referendum results giving pounds a backlash...Naira will gain more today .

At least good news

Hiding a poor economic state behind a 'half-truth' one-line topic. The content doesn't preach the same positive bearing that the headline announces.

noted also

Story for the gods, who believes this _shit?

Brexit!!! I'm soo happy

kikio1992:
I don't understand all this equity, liquidity, stock and so on. Who go teach me joor.

Kindly check my signature


Mr peter1994 no dey respect elders

Those are the terms used to make you think everything is alright.

The best way to know if things are alright is to pick up your bag, go to the market. Find out how much you can buy foodstuff.
If tomatoes is still 4 pieces for 400 naira or a bag of rice still 17000, come back home, nothing is alright yet.
Forget the equity, liquidity, GDP, IGR, 0.3%, momentum, etc,.
Those are just English vocabularies being misused by half educated rogues running and ruining our system.
..

You cannot announce to the world that everything is very fine with you and the next morning, you announce you are borrowing money to pay salaries.

Zombies are allowed to attack me the sameway Wailers are allowed to hail me but the truth is
I am old enough to know when to rejoice and when not to rejoice.

No amount of news online can make me lower my guards, there are too many political liars on the Internet, and their Leader works for the current Government.

we need increase in all area in Nigeria .

nice

Not unexpected na.

good news for people who trade in shares

He he he he he. ....

G

We will get there.

Just imagine all these pathetic debtors teaching us economics and the yam eaters return what is in their possession.

It is enough to save the naira and the economy.

Great news!

Can't read all these story just want to know how much is Naira to dollar

Hope it will have an impact in the market?

Deceiving Buhari since 1983

Ok

abboki wey dey change dollar go dey look Op like...

kikio1992:



Mr peter1994 no dey respect elders

.

No vex abeg. it is my turn to shine....

sweatlana:
Breixt!!!! I'm soo happy

I was wondering why you "soo happy" but then I realised you couldn't even write Brexit properly. Then I have my conclusion.