Feb 19 (Lagos) - Following another round of Naira devaluation and updated bad news on inflation, the stock market is showing signs of resilience this morning. Could it be that the bulls are looking to make a comeback because the stocks need to adjust once again to the new low Naira levels or is it just wishful thinking or something known as a bull trap. Time will tell.
As of writing this article, market is going higher led by 2 power sector stocks and 2 big banks namely like
GEREGU ,
TRANSCORP ,
GTCO ,
ZENITHBANK while
OANDO is also higher by more than 3% following latest adjournment of its de-listing court case.
Naira has fallen to 1720 levels in the parallel market according to websites that track that market. There are protests happening in various parts of the Country due to economic hardship that no one imagined would befall upon them when this Government was elected just 8 months ago. Now the situation is coming to a point where eating food is becoming a problem for millions of people leading to protests.
CBN does seem to be trying all the powers it has in its hands. The new CBN governor is getting ridiculed on social media everyday but the truth is that the man needs time to repair the damage that has been done for years and years. It is very unfair to keep summoning him to come and explain in senate or house of reps that why Naira is weakening. When the ones summoning you to explain are driving around in the latest imported SUV's, wearing the best foreign brands, children studying abroad, having houses abroad and going abroad for any medical issues. you have to feel for the CBN governor, he must feel disgusted inside to explain to these people why Naira is falling.
As for the bulls returning yet or not, we will be waiting. It has to come now or later. Nigeria must be great again. Insecurity has to be crushed. We cannot have it any other way.
reporting for easykobo.com on Monday, Feb 18 2024 from Lagos, Nigeria