Govt as metaphor for market volatility


Equity investors in Nigeria are navigating choppy waters. They sleep and wake with more downswing than upswing. The ended bullish last year despite the impacts of on operations of the quoted companies and many investors became instant millionaires. By Bloomberg’s report, in 2020, The Nigerian Stock Exchange posted a one-year return of +50.03% to top S & P 500 (+16.26%) and Dow Jones Industrial Index (+7.25%).

The late last year was largely driven by the low yield on fixed-income securities policy of the Central Bank of Nigeria (CBN). Much as speculators are desirable as providers of liquidity into the market, they do this with decorum. They press panic button whenever they spot oppotunities for superior return on investment anywhere. There is an inverse between money market and capital market.

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