The Nigerian stock market surged to its highest level since July 2008 on Tuesday the first trading day since the suspension of Godwin Emefiele as the governor of the Central Bank of Nigeria (CBN) by newly-elected President Bola Tinubu.
According to the reports, the main index of the Nigerian Exchange Limited (NGX) rose 2.7 percent to above 57,437 points, taking the year-to-date gains of the market to 11.8 percent, almost double the six percent return on the MSCI index.
On Tuesday, June 13, the NGX Banking Index also take off 8.5 percent to 570.64, the biggest advance in more than eight years.
The head of research at Chapel Hill Denham, Tajudeen Ibrahim who spoke to Bloomberg said it reflects optimism over the policy signals from the President.
He said, “An improvement in the economy will enhance the performance of companies operating in the market. 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.”