Nigerian stocks hit three-month high on strong earnings, FX moves

Nigerian stocks hit a three-month high on Tuesday, lifted by company earnings results that outperformed market expectations and hopes that a new currency-trading window will help lure investors back to Africa’s biggest economy, analysts said.

The market all share index rose 0.77 percent to 25,965 points, led higher by banking and oil stocks.

In a client briefing note, Vetiva Capital noted corporate results were better than expected and said it anticipated increased demand for Nigerian stocks this week.

Dangote Cement, owned by Africa’s richest man Aliko Dangote, which accounts for a third of the market capitalisation, reported a 34 percent rise in post-tax profit, beating the market consensus.

In a boost for investors in Nigerian equities, the central bank last week allowed portfolio investors to trade the naira currency at a market-determined exchange rate and increased dollar sales on the interbank market.

After the slump in the global price of oil, Nigeria’s main export, the central bank imposed a raft of capital controls to protect its dwindling hard currency reserves.

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Ezeadichie Onyeka Michael is the Co-Founder of Haelsoft, a Professional Services Company in Nigeria that provides Information and Technology Services for small and big size companies in Nigeria(Africa). He is an Entrepreneur and Venture Capitalist with Expertise in Web Technology and Digital Marketing. He has developed & Implemented Digital Marketing Strategies(Campaigns) for top brands across sectors in Finance, Telecommunication, Ecommerce who operate in the African market. His professional experience includes key roles at Google Business Group(Nigeria), Google Women on the Web (Nigeria), Edubridge Consultant and Wild Fusion where he has trained over 500 Entrepreneurs on how to use various Web Technology products to succeed online. Customer centricity, User Experience, Conversion optimization are 3 pronged framework he applies around the often-frenetic world of web analytics to ensure that clients stay competitive in the market. He believes that investing in talent is the key to long term success for brands across Nigeria (Africa).

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