Investors See More Nigeria Gains If Opposition Wins Election
- AllianceBernstein sees rally if Abubakar beats Buhari in vote
- Nigerian equities have underperformed emerging peers in 2019
People's Democratic Party (PDP) supporters gather in Tafawa Balewa Square in Lagos, on Feb. 12.
Photographer: Luis Tato/AFP via Getty Images
The recent rally in Nigerian assets may pick up steam if there’s a change in government after this weekend’s presidential election, according to money managers and banks including AllianceBernstein LP and Citigroup Inc.
The main equity index in Africa’s biggest oil producer is heading for its best month in more than a year. But its 3.1 percent gain in 2019 is still less than half the 7.9 percent jump for MSCI’s gauge of emerging-market stocks. Foreign investors haven’t warmed to Nigeria despite rising prices for oil, its main export, and the U.S. Federal Reserve’s dovish tilt, which has fueled demand for riskier assets.