Nigerian Stock Market appears in Top 5 Global Performers for 2017
Just as the national economy rebound from recession, the Nigeria bourse has appeared in the top five of global best market performers, according to CNN report monitored by Newsclickng.
A 2017 year review of the global stock market by CNN indicates that the United States stocks were on a first-class ride into record territory as the runs to an end. However, countries like Nigeria, Turkey, Hong Kong and Argentina did better than the US and these five countries are the biggest market stock winners of 2017.
Here’s a look at the biggest stock market winners of 2017:
1) Argentina: Argentina’s Merval index surged 73% this year and hit a record high the day after Christmas.
The economy is growing and stocks have rallied strongly since after the election of President Mauricio Macri in late 2015. The Merval gained 45% in 2016.
The president is said to have pursued a number of economic reforms this year, helping to further boost business confidence.
2) Turkey: Turkey’s benchmark index rallied by 43% this year as the government implemented temporary tax cuts and a loan guarantee program that encouraged banks to lend to small businesses. GDP growth soared, reaching 11.1% in the third quarter.
The stock market performance was also helped by the falling Turkish lira, said Neil Shearing, chief emerging markets economist at Capital Economics.
3) Nigeria: The Nigerian All-Share index is still miles below record highs set in early 2008, but a 43% rally in 2017 has helped to close the gap.
The index suffered mightily in 2015 and 2016 as low oil prices, militant attacks, currency troubles, elections and Ebola hit investor sentiment.
But oil prices have moved higher, the central bank has made it easier to swap currencies and the economy has snapped out of recession, explained Zin Bekkali, founder and CEO of Silk Invest.
Many analysts are optimistic that stocks could keep rising in 2018.
“If you look at where we stand today, the Nigerian market is still one of the cheapest markets on the planet” said Bekkali.
4)Hong kong: The Hang Seng charged ahead by nearly 35%, but China’s major mainland indexes in Shanghai and Shenzhen floundered.
5)United States: The Dow Jones Industrial average shot up by 25%, the S&P 500 surged by 20% and the tech-heavy Nasdaq index outshined them with all with a stunning 29% gain. The value of public companies on global stock markets grew by $12.4 trillion in 2017, according to S&P Dow Jones Indices, which included dividends in its calculation. The U.S stocks were front and centre as investors bet on strong economic growth, solid corporate earnings and hopes that President Trump would roll back regulations. Trump also boosted markets with a big corporate tax cut.
The Biggest Loser is Qatar
Gulf nation Qatar’s stock market tumbled by 19% amid a spat with its neighbours: Saudi Arabia, Bahrain and the United Arab Emirates.
Their decision to cut diplomatic ties and transport links with Qatar in June took the region by surprise. The nations accused Qatar of funding terrorism, a charge it denies. Efforts to restore ties have so far failed.
Qatar has found workaround strategies and different trade routes to get by, said Shearing.
“A lot of the initial economic disruption has faded,” he said. “It doesn’t look like [this] will be resolved quickly, but it doesn’t look like it’s doing vast damage to Qatar’s economy.”
CNN