Jan 12 (Lagos) - Banking stocks showed strength and led the all share index higher by 0.55% at yesterdays close. The ongoing currency note shortage amid the CBN policy brought strength to the Banking sector (
GTCO ,
ZENITHBANK ) by re-enforcing its importance and banking stocks have largely made up for the losses during the last year. A lot more people go to Banks now and that temporarily boosts their business.
The upcoming elections could see international investors, who make up the bulk of the value transactions take another look at Nigeria and its vast economy undermined by policy decisions of the last decade. The currency devaluations have eroded the value of Nigerian companies in the International arena as stocks have not kept up with the devaluations affecting the market capitalizations of Companies.
If and when that happens and the people get it right then we could be on verge of multi year rally in stocks, something similar to what happened in India when Modi became PM in 2014. It is the way democracies work when pushed to a certain level of stagnancy, they could change the future through ballot. New leader could come in and start moving the ball. Such uncertainty is exactly what the stock market bulls feed on because stock market looks to the future.
reporting for easykobo.com on Jan 12 2022.