– All is not gloom for Nigeria’s economy in 2020 despite sliding into recession in the face of the challenges posed by COVID-19
– The country’s stock market has just been named the best-performing in 2020 among 93 equity indexes tracked by Bloomberg
– Nigerian stocks have also been touted to be on the way to recording the highest annual gain since 2013
Bloomberg has ranked the Nigerian Stock Exchange as the best-performing stock market among the 93 equity indexes being tracked by the global media outfit.
The report also indicates that Nigerian stocks are headed for their highest annual gain in seven years.
It attributed the development in the nation’s stock market to the low yields in the fixed-income market.
The report states:
“The equities benchmark index in Africa’s largest economy recorded its highest return, rising 45.7% this year, the most among 93 equity indexes tracked by Bloomberg. It’s the world’s best-performing stock market year-to-date.”
Legit.ng gathers Chapel Hill Denham, a leading independent investment bank, said that the nation’s investors’ appetite for riskier assets has remained strong due to persistent low yield on fixed-income instruments.
The bank also stated that equities will continue to outperform bonds in 2021 given the current overstretched fixed-income valuations.
Naira’s recovery against dollar will begin February 2021, says CBN
Meanwhile, amid the harsh economic effects of COVID-19 in Nigeria, there is also hope that the naira will be experiencing a boost against other international currencies.
To be precise, the Central bank of Nigeria (CBN) has projected that by February 2021, the naira will appreciate against the United States (US)’s dollar.
The apex bank’s outlook for the naira is contained in its Business Expectation Survey.
Rising cost of food to be addressed in 2021, Buhari promises
In a related development, President Muhammadu Buhari has assured Nigerians that his administration would check the rising cost of food in the country in 2021.
Buhari made the promise on Tuesday, December 29, during his meeting with the presidential economic advisory council at the state House, Abuja.
According to a statement by a presidential spokesperson, Garba Shehu, the president reiterated his earlier directive to the CBN not to grant foreign exchange for food importation.
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