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stock market booms
The boom in the Nigerian stock market is underpinned by very strong financial reforms initiated 3 years ago and are significantly bearing fruits. The changes witnessed the consolidation of the banking sector from a plethora of more than 90 banks to only a mere 15 banks. This has given the banks strong assets base and liquidity. To further entrench itself the sector has recently expanded its capital base through listing on the local bourses(stock exchange) for chiefly two reasons , tape into the buoyant cheap funds on the market mainly from its oil industry and secondly improve on consumer confidence through an improved governance structure that publicly quoted companies are reputed for. In the past 12 months more than 6 banks have been listed on the Nigeria Stock market which is currently among the most vibrant and profitable in Africa. This is no surprise as the country is equally on an upward trend economically. The biggest stimulant being the unexpected positive spin on the political situation with the new government in place. Confidence in the present government in Nigeria is high and this in founded on the leadership credentials of the new President. Despite all the talk of improper election process every Nigerian believes even if the elections had been conducted any more organised the result would not have been different because of the credentials of the incumbent president, Yaradua. Ofcoure there is merit in all this. Here is a seasoned governor who has done a splendid job as a governor when most other governor were roped in looting charges and have the EFCC after them , Yaradua , was probably the first governor to bring change to the Federal reserves after completion of all his projects in his state. Alas even if if i was looking for a CEO to run my company and i had such a man as a manager he will be top candidate for promotion. So the Nigerian market enthusiasm is not without its impeccable merit. His first 100 days in power has been very reassuring and highly focused on key things the country and federal government needs to work on and even his critics and election mongers have had to bow down. This is the right time to invest in the market and indeed a number of companies will continue to go public as the federal government tightens its grip on regulation, . governance and corporate accountability and majority of these companies are extremely healthy and profitable!
Botswana market coming of age
Reputed as one of Southern Africa ‘s most stable countries and among its richest , Botswana boasts of some of the highest economic indicators in the region with an economy founded on its diamond mining, prudent fiscal policies and international financial and technical aid. Diamonds are Botswana ‘s national treasure and are rumoured to be more protected than the president!!. Well it makes sense in a way diamonds have underwritten Botswana’s healthcare and education programs! This is one of Africa ‘s most successful stories, moving from an economy dependant on livestock to diamonds and now fast becoming a financial and tourism harbour. The performance of the Botswana stock exchange in the past four years has been impressive. But a closer look at the past 6 months is even more revealing and if these trends are anything to go by then there is a bright future in investing in the Botswana equity market. Here is a reasl life scenario ;
If you had invested US$ 5,000.00 in Jan 07 in Botswana in any of these companies your profit in July 07 would have been any of the following :
First national bank | US$ 8,645.00 | 72.9% |
|---|---|---|
Standard chartered bank | US$ 9,000.00 | 80.12% |
Barclays bank | US$ 7,100.00 | 42.31% |
Botswana insurance | US$ 8,650.00 | 73.53% |
Sechaba Holdings | US$ 5,700.00 | 14.29% |
Imara Holdings | US$ 15,000.00 | 306.56% |
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