Nigerian ETF Rallies On Election News

Halfway around the world, the Nigerian presidential election has been decided after three days of collecting and tallying the votes. It is being reported that former military leader Muhammadu Buhari has won by defeating current president Goodluck Jonathan. This marks the first time an incumbent has lost in Nigeria since 1999, when democracy was restored for the country. The race was close, with Buhari ahead of Jonathan by approximately two million votes.

President Buhari

Buhari had a distinct advantage in every section of the country, except for the oil-rich Niger Delta in the Christian south, where Jonathan reportedly had an "astronomical edge." With oil being the main driver of the Nigerian economy, it is crucial that the two sides get started off on the right foot and avoid tension with the new administration going forward. Buhari has promised to bring a new financial landscape to the oil exporting country, as he begins to slowly repair the political and economic circumstances from the inside out.

Related Link: CAMAC Energy Concludes Oyo 8 Completion Operations

This, however, is not Buhari's first time leading Nigeria, as a former military leader, a series of events brought him to power more than 30 years ago in late 1983. The leadership was short lived, as another military uprising in 1985 quickly ousted him. This election was his fourth time running for president since being ousted 30 years ago.

President Buhari's campaign was overwhelmingly anti-corruption, vowing to eliminate corruption from the political system that many believe has stifled the Nigerian economy for decades.

He praised his supporters for that vote by stating, "Your vote affirms that you believe Nigeria's future can be better than what it is today." He continued, "You voted for change, and now change has come."

Highlighted below is the only Nigerian ETF available to investors.

Global X MSCI Nigeria ETF

The Global X MSCI Nigeria ETF (NYSE: NGE) is made up of 20 companies in Nigeria.

The top holdings are:

• Nigerian Breweries Plc making up 16.5 percent of the ETF
• GUARANTY TRUST BANK PLC GUARY with an 11.2 percent holding
• Zenith Bank limited, coming in at 9.3 percent

NGE is down 28 percent over the last 12 months, down 30 percent over the last six months and up 36 percent since hitting low in mid-February.

The ETF gapped higher by 9 percent on Wednesday following the election news. The ETF has an expense ratio of 0.68 percent.