Nigerian stock-exchange performance and USD/NGN remain correlated
Source: FxWire Pro - Commentary / 08 Dec 2014 01:49:20 Eastern Standard Time
Quotes from Standard Chartered:
-A clear correlation between the Nigerian stock market's performance and the exchange rate has re-emerged in Q4, with the Nigerian Stock Exchange (NSE) All-Share Index losing 19.1% since early October (and 22.7% since the 2014 high recorded in mid-July).
-Equity portfolio outflows intensified as the exchange rate came under pressure, which in turn precipitated the NGN sell-off. We estimated foreign holdings of equities at around USD 10bn in late Q3, although this included the valuation effect given the significant rally in the stock exchange between H2-2012 and H1-2014.
-We think foreign equity holdings may have been reduced by around USD 2.5bn, although this is difficult to quantify in the absence of official CBN figures.© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.