Lagos – The Nigeria Stock Exchange (NSE) is
lagging behind other major bourses in the continent owing to prevailing
According to the First Bank of Nigeria, one of the
leading financial houses in the country, the bourse in Lagos is the
worst-performing of the three African indices the firm intermittently track.
NSE’s all-share index (ASI) recovered from a low of -21,6
percent year-to-date on January 19 to close the month at -16,5 percent and
further to -9,3 percent as of Friday.
The pick-up in the NSEASI since the beginning of March
tracks that in the crude oil price.
“Trading values have been pitiful this year on the NSE,”
FBN Capital stated on Monday.
It pointed out NSE averaged US$11,6 million compared with
US$26,6 million in the same period of 2015.
Also read: NSE capitalisation drops by N297bn
“This can be explained in good measure by the dramatic
loss of buying interest from the offshore portfolio community in response to
the slowdown in growth, the CBN’s exchange-rate policy and acute fx shortages,”
FBN Capital stated.
On the other hand Nairobi Stock Exchange has benefited
from the disillusionment of the foreign player with Lagos, particularly the
dedicated Africa funds which have limited investment destinations.
Also the Kenyan economy is growing by about 5 percent
FBN Capital stated Johannesburg’s performance of 1,7
percent ytd had defied the sluggish economy, the mounting pressures surrounding
the Jacob Zuma presidency and rising unemployment in the mining industry.
“The NSE would benefit above all from some
sizeable new listings, and in sectors barely represented on the exchange. In
time there should be some good news from the restructuring of the NNPC. We urge
patience,” FBN Capital stated
- CAJ News