FTSE re-entry triggers foreign demand for Nigerian equities
Nigeria’s re-entry into the FTSE Russell Frontier Market indexes has triggered a sharp rise in foreign demand for equities, especially banking stocks. Read More: https://punchng.com/ftse-re-entry-triggers-foreign-demand-for-nigerian-equities/
Nigeria has officially rejoined FTSE Russell's Frontier Market indexes, prompting a surge in foreign demand for Nigerian equities. This reclassification follows a three-year hiatus due to foreign-exchange illiquidity and capital repatriation bottlenecks. Major banking tickers, including Zenith Bank Plc, Guaranty Trust Holding Company Plc, and FirstHoldCo Plc, experienced heightened trading activity on Monday.
The improved market infrastructure, including a transition to a T+1 settlement cycle, has been credited with Nigeria's successful readmission. Analysts anticipate sustained portfolio tracking flows as international benchmark funds complete their adjustments. Additionally, the relatively high yield on Federal Government of Nigeria bonds, around 17.10 per cent, further enhances the domestic capital market's appeal.
Brief written by urgent.news from Punch's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
