(Adds details)
By Chijioke Ohuocha
LAGOS, Aug 23 (Reuters) - Nigerian stocks extended their
rally on Friday to a three-week high following President
Muhammed Buhari's inauguration of cabinet ministers, boosting
hopes for reforms that could lift growth for Africa's biggest
economy, traders said.
Nigeria's economy has grappled with low growth since
recovery from recession three years ago. Buhari, who began a
second four-year term in May, has pledged to revive the economy.
But investors have been waiting for policy signals that could
lift economic growth.
Buhari assigned portfolios to ministers on Wednesday,
retaining 14 from his past administration while appointing 29
new ministers, in a cabinet made up of political loyalists,
analysts say, lifting a layer of uncertainty for reforms.
The stock market .NGSEINDEX rose for the third session on
Friday to 27,830 point, up 0.73%.
Analysts said the rise was a relief rally and that half year
corporate results, particularly from banks, were also
supportive. Local banks have been trading at low book values,
weighed down by weak sentiment over the economy.
Stocks had been on a losing streak since end of May, when
Buhari was sworn in, due to his failure to appoint a cabinet
months after winning a second term in February's election. That
prompted foreign investors to trim their holdings.
However, bonds had seen foreign inflows as the central
bank's tight monetary policies boosted yields.
Buhari has pursued protectionist policies since first taking
office in 2015. He has backed a currency intervention that has
seen the central bank pump billions of dollars into the foreign
exchange market and policies aimed at curbing imports to boost
local production.
The index of Nigeria's top 10 lenders .NGSEBNK10 gained
2.18% while oil .NGSEOILG5 and consumer .NGSEFBT10 stocks
rose marginally. Dangote Cement DANGCEM.LG , the biggest firm
by market cap, climbed 1.2%, to help lift the index.
(Editing by Alexis Akwagyiram, Editing by William Maclean)