The Nigerian Stock Market has gained 17.37% in 2 weeks to the astonishment of investors. The question that arises, therefore, is whether this is a bubble or a reflection of economic fundamentals.
In 2008, there was a similar rally to be followed by a catastrophic crash; the rest, as they say, is history.
In addition to the stock market’s effervescence is also an oil price stratospheric rally. This has left analysts wondering about its sustainability.
The EIU expects Brent to trade higher this year at an average price of $59pb, compared to 2017’s average of $53.7pb. This is positive for Nigeria’s trade balance, external reserves and currency.
In this edition of the FDC Bi-monthly publication, the FDC Think-Tank analyses these and other developments within the domestic and global macroeconomic environment.
Enjoy your read.