Nigerian stocks surged Wednesday, as investors cheered that country’s recent election results.
The Global X MSCI Nigeria ETF NGE, +15.73% was up 16% at last check. It’s gained 27% over the past month, as shown in the chart below, though the exchange-traded fund is coming off a slump of 43% last year.
Investors are betting that president-elect Muhammadu Buhari, who defeated incumbent President Goodluck Jonathan, will deliver improvements to Africa’s largest economy, which has been hammered by crude oil’s crash and other factors. Economic growth may be limited in 2015,writes Barron’s Dimitra DeFotis, citing Simon Freemantle, economist at Standard Bank.
It is worth noting that the Global X ETF provides exposure to 20 public companies based in or dependent on Nigeria. It is the only Nigerian exchange-traded fund, though it competes with broader plays like the Market Vectors Africa ETF AFK, -0.69% and the iShares MSCI Frontier 100 ETF FM, +3.23%.