LAGOS – Nigerian stocks climbed to a 16-year high in dollar terms on Thursday after a sharp drop in the value of the naira currency undervalued equities.
Stocks have risen 86 percent so far this year in dollar terms to levels last seen in 2001, according to Thomson Reuters data. They are down 7 percent in naira terms year-to-date.
However, stocks rose to their highest level in a week in naira terms on Thursday, a day after the Nigerian government said it was determined to overcome its first economic recession in a quarter of a century.
The naira has been trading at around 305 since last August, supported by a series of central bank interventions after the currency lost a third of its official value against the dollar last year.