Will international investors follow the emerging-market rebound into Nigeria? Last year the country was one of the world’s two worst-performing markets. With prices so low, Templeton fund manager Mark Mobius touted Nigerian bank stocks last month.
Nigeria’s share index rose 10% in the first weeks of 2010. Some of the biggest gainers were the nine banks that failed the central bank’s audit of systemic risk in the summer.
However, the proposed auction of these banks, which are in negative equity, might prove difficult. And the longer this recapitalization process takes, the more fearful markets might become. If some of the nine banks are...
