Foreigners Pile Into Nigerian Stocks, New York ETF as Oil Climbs

Nigeria’s stocks have been among the world’s best-performers in the past four months, and foreign investors are a big reason for that.

Net foreign inflows to Nigerian equities totaled 337 billion naira ($940 million) last year, the first time flows have been positive since at least 2013. December was the best month since Bloomberg started compiling data at the beginning of 2014, with net inflows of 140 billion naira, signaling a switch in sentiment toward equities in Africa’s biggest oil producer.

Surging Into Stocks

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Nigerian equities have gained in allure for international traders, thanks to the rise in Brent crude prices to around $70 a barrel and an easing of dollar shortages, which are helping Africa’s largest economy recover from its worst slump in 25 years. They’re also attracted by what remain among the cheapest valuations on the continent.

The turnaround has seen investors pile into the New York-based Global X MSCI Nigeria ETF this year, too. That’s increased the exchange-traded fund’s market capitalization to almost $100 million, triple the size of a year ago.

Tags: Nigerian stocks