WSJ (London) - The Wall Street Journal and Dow Jones company, has rated Nigeria and Kenya’s stocks as two of the best market investment ahead of the US and most european and asian stocks, this year (2007).

According to a Wall Street Journal article, written by Henry Sanderson, a Dow Jones company correspondent, “the adoption of sounder macroeconomic policies in Africa increased consumer spending, and Chinese demand for the continent’s commodities have fueled solid growth, spurring expansion in telecommunications, retail banking and other service sectors.”

Government reform and privatization in Nigeria, has continued to strengthened the stock market and encouraged Nigerians to buy stocks while Kenya’s 30% privatization of Kenya Electricity Generating Co. raised 7.85 billion Kenyan shillings, or about $108 million, for the government and represented an unprecedented mobilization of wealth among the population, as Kenyans sold land and cattle to buy shares.

The conclusion was substanciated from figures coming out of the various world market reports. While the MSCI index, a benchmark for international markets around the world, fell 11% in May, two of Africa’s most-promising sub-Saharan markets, Kenya and Nigeria — which have both more than doubled in size in U.S. dollar terms during the past three years — rose 6.5% and 5.6% respectively, according to Investec Asset Management.

It will be recalled that various Nigerian firms ranging from the food to the banking sector, have sold huge stocks to investors through IPOs during the year, starting from Dangote Sugar company to banks like Zenith Bank, First Bank, IBTC, Allied Bank, Fidelity Bank, and many others still active as at the time of this report.

Subscribers can read the full article on the Online web page: http://online.wsj.com/article/SB115975826938879719.html

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