Three stocks are doing the heavy lifting on the Nigerian Exchange right now. First Holdco, Dangote Cement, and Aradel are the names driving a 60 percent surge on the NGX this year, a rally that follows the exchange's reclassification by FTSE.
The FTSE reclassification is the key piece of context here. When a major index provider moves a market into a new category, it tends to shift how international fund managers look at that exchange, and fresh attention from outside investors can move prices fast.
What makes this moment worth watching is which sectors are leading. A financial holding company, a cement giant, and an energy player sitting at the top of the rally tells you something about where confidence is concentrating on the NGX right now.
Sixty percent is a number that gets people talking, and it will be interesting to see whether the momentum holds or whether this is the kind of run that cools once the reclassification buzz settles.
Originally published by BusinessDay.