I am still smacking from today’s stock market rally and wondering if this is just a blip. I also tried to see if what is happening in the Nigerian stock market is also happening in other emerging market countries. Nowhere else to check than to track the MSCI Frontier Market Index which tracks a basket of emerging market stocks which includes some heavy weight companies in the Nigerian All Share Index. This is what I observed;
First for the MSCI Frontier Market Index between October 15 and December 23rd
Next up is the Nigerian All Share Index for the same period
The similarities are remarkable and could mean a whole lot of things for different analysts. However, if you are to believe that the MSCI is a good barometer for how the stock market will fare then I guess this chart is pretty useful. It is however important to note that the Index also constitutes countries such as Argentina, Morocco, Ghana, Ukraine, Bulgaria, Saudi Arabia etc. making Nigeria is a major component of that market. What happens in Nigeria is bound to affect it also to a large extent.
