Stock Market Jumps To 15-Year High

By Glam & Essence

The first day of trading on Tuesday, after the suspension of the Central Bank Governor, Godwin Emefiele, the Stock market jumped to 15-year high
This will be market’s highest rise level since July 2008
Report by Bloomberg, investors are betting on a currency devaluation and sent the main index of the Nigerian Exchange to above 57,437 points, which contrasted with a flat performance for MSCI’s main emerging equity benchmark.
The report stated that this move takes the country’s stocks’ year-to-date gains to 11.8 percent, almost double the six per cent return on the MSCI index.
It noted that the rally, which followed increased gains on Nigerian dollar bonds on Monday, reflected optimism over the policy signals from the newly elected President, Bola Tinubu.
According to Tajudeen Ibrahim,the head of research at Chapel Hill Denham, “An improvement in the economy will enhance the performance of companies operating in the market.”
Since he resumed office, President Bola Tinubu has removed fuel subsidy and rsuspended the CBN governor, Emefiele.
The move has seen an 8.5 percent to 570.64 rise by the NGX Banking Index, its biggest advance in more than eight years.
Ibrahim, added, “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.”