​Lagos bourse, the weakest link
Lagos and Nairobi stock markets have declined ytd by -20.5% and -12.1% respectively, whereas the far more liquid Johannesburg stock exchange has gained 5.8% ytd. Lagos has been very volatile this year. It shed -8.4% in the first quarter, then increased by 5.4% in Q2 but declined again to 8.6% in Q3. Foreign investor appetite for Nigeria remains low mainly due to fx challenges stemming from subdued global oil prices. Rate cuts (both MPR and CRR) by the MPC at its last meeting were expected to boost liquidity, at least in the near term. However, there has been little or no positive reaction by the market.
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