Nigerian stocks are headed for their highest annual gain in seven years riding on low yields in the country’s fixed-income market.
Equities will continue to outperform bonds in 2021 given the current overstretched fixed-income valuations, according to Chapel Hill Denham.According to the exchange, equities continue to respond positively to macroeconomic policy changes such as the cut in Monetary Policy Rate by 100 basis points from 12.5 per cent to 11.5 per cent by the Central Bank of Nigeria in September 2020.
Mr. Lukman Otunuga, Senior Research Analyst at FXTM, a global online financial trading and investing firm in a chat with our correspondent said the development was based around investors hunting for profit at a time where the country’s fixed income market is offering negative real yields.