• Tuesday, November 28, 2023
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Stocks jump to 15-yr high, Eurobonds cool as market cheers Emefiele exit

All Share Index crosses 60,000 psychological level as banking stocks rally

Nigeria’s stock market jumped to its highest level since July 2008 Tuesday as investors interpreted the suspension of CBN governor Godwin Emefiele last Friday as the end of unorthodox monetary policies that have spooked foreign investments.

The market rose 4 percent to above 58,163 points, according to Bloomberg data, taking the year to date return of the market to 11.8 percent, almost double the 6 percent return on the MSCI index.

Meanwhile, Nigerian Eurobonds were roughly flat on the day after an initial surge Monday in reaction to Emefiele’s suspension.

Read also: Big banks in blockbuster rally as investors cheer Emefiele exit

Nigeria’s 2025 Eurobond is now yielding single digits at 9.2 percent. Yields on the 2025 Eurobond had been in the double digits over the past year and a half.

Asset managers including hedge funds and real money investment funds are driving buying activity in the Eurobonds.