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LequteMan
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Nigeria's equities market in the last two weeks gained N277 billion despite JP Morgan's decision to remove Nigeria from its Government Bond Index (GBI-EM) by the end of the year.
Following the announcement there were apprehensions that the equities market would also suffer as the threat directly affects the bonds market - this led to an initial panic selling among equity investors.
However, the market recovered quickly as some investors swooped on highly discounted equities.
The market gained N277 billion, rising from N10.148 trillion to N10.425 trillion in two weeks. The market added N42 billion in the first week when JP Morgan made the announcement and gained N225 billion last week.
Some market operators said despite the initial threat, discerning investors see a lot of value in the Nigerian equities market, adding that the fundamentals of many of the companies remain strong.
CBN Governor, Mr. Godwin Emefiele, last week assured jittery investors that the central bank was “doing everything possible” to ensure that the country remained on the JP Morgan Index in order to avoid the adverse consequences which the country’s exclusion could cause.
ThisDay
Following the announcement there were apprehensions that the equities market would also suffer as the threat directly affects the bonds market - this led to an initial panic selling among equity investors.
However, the market recovered quickly as some investors swooped on highly discounted equities.
The market gained N277 billion, rising from N10.148 trillion to N10.425 trillion in two weeks. The market added N42 billion in the first week when JP Morgan made the announcement and gained N225 billion last week.
Some market operators said despite the initial threat, discerning investors see a lot of value in the Nigerian equities market, adding that the fundamentals of many of the companies remain strong.
CBN Governor, Mr. Godwin Emefiele, last week assured jittery investors that the central bank was “doing everything possible” to ensure that the country remained on the JP Morgan Index in order to avoid the adverse consequences which the country’s exclusion could cause.
ThisDay
