BMI Soars as Tourists arrive in Nigeria

Great anticipation surrounded Nigerian Stock for the duration of the LNRFC Ambassadors Tour 2007. It was to be a time of high volatility and for the tourists and the potential for profit was deemed to adequately high which invoked great interest and speculation on various sectors.

The main point of discussion and the source of a lot of speculation on the market was the BMI Index. Ritchie Ross Forrester and Chi-Chi Obuaya financial analysts and aggressive investors in their own rights both speculated that there would be a brief but noticeable increase in the BMI Index but that a swift correction would follow leaving the Indices with very modest gains at the end.

On the other hand Wole Olufunwa and Ernest Hanson usually very aggressive investors in the market, warned against investing in the BMI Index as returns were rather too unpredictable and unreliable for his tastes.

In reality the BMI index saw a very sharp increase showing at least as much as 18% increase within the first 2 days of the tour's arrival. It then went on to through previous resistance level and consolidating it position very well above expected levels.

Unlike most indices the BMI trades through the weekend and some analysts even go as far as to say that this is the peak period of trading when most new highs and lows occur.

True to form the BMI index volumes broke through record levels on sunday night just as markets were opening in the east. Tourists saw gains reach close to 50% above the levels at the beginning of the tour, a feat only possible in Nigeria. The market even saw huge spikes in offered prices of close to 1200% above market. Thankfully these offers were not taken as the ramifications to the market as a whole could have been devastating.

With these new highs, the the market saw new fresh investors anxious to scoop up some of the profits and this drove the market even higher. The new investors were heard to report greater than expected gains. One investor who requested to remain anonymous boasted over 300% increase in his assets due to market movements in the BMI.

With the departure of the tourist levels are reported to returning to normal however we expect that levels will probably never return to original levels after the tour.

Other indices and areas of the market saw modest gains but these will be rounded up in the next instalment of Tour Finance.

Reporting

Osahon Omokhodion

LNRFC Finance