Nigerian equities and country-specific exchange traded fund surged Wednesday, extending recent gains to a new high as investors jumped back into the market in anticipation of strong earnings growth after the economy broke out from its recession.
The Global X Nigeria Index ETF (NYSArca: NGE) was up 5.3% Wednesday.
Investors were focusing on consumer goods and banking shares ahead of strong earnings and a possibility of dividend payments after Nigeria pulled away from a recession in the second quarter, Reuters reports.
The financial and consumer staples segments are the two largest sector weights in NGE’s portfolio, making up 51.4% and 36.4%, respectively, of the ETF’s underlying holdings.
NGE has increased 27.1% year-to-date, recovering from losses earlier in the year after the central bank in April lifted currency controls for foreign investors.