Emerging Markets: Prospects for Portfolio Investment

Chart 1: Nigeria’s exchange rate over time shows large jumps and periods of government intervention in an attempt to stabilize the rate over different periods (usually resulting from significant oil-related events).
Chart 2: Visualization of Nigeria’s stock market performance over the last several quarters; highlighted is the downwards trend of Nigeria’s stock market even before the COVID-19 pandemic hit. The trend is expected to continue into 2021, indicating poor stock market performance prospects.
Table 1: Correlation Matrix between Nigerian Stock Exchange returns and other selected markets over the past 16-year period (indicative of low correlation); Table 2: Correlation Matrix between Nigerian Stock Exchange returns and other selected markets over the past 1-year period (indicative of high correlation due to global event- COVID19). Tables separating activity post-introduction of COVID19, not seen here, show even stronger correlations of over 90%.

International Development Economist/Practitioner

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Kev del Castillo

Kev del Castillo

International Development Economist/Practitioner

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