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UPDATE 2-Nigerian stocks record biggest daily rise in 5-1/2 years

Published 06/10/2020, 13:38
Updated 06/10/2020, 14:24

(Adds details)
By Chijioke Ohuocha
ABUJA, Oct 6 (Reuters) - Nigerian stocks posted their
biggest daily gain in 5-1/2 years on Tuesday, after shares rose
for the 12th straight day as money market liquidity flowed into
equities, traders said.
The all share index .NGSEINDEX rose 4.36%, the largest
percentage gain since April 2015, to reach an eight-month high.
Shares gained 8.3% in April 2015, when Muhammadu Buhari
became the first Nigerian to oust a president through the ballot
box, putting him in charge of Africa's biggest economy.
They have been rising since last month after the central
bank unexpectedly cut interest rates to spur growth, triggering
a re-rating on the stock market.
Domestic funds have fuelled the recent stock market rally
after rotating out of the debt market due to low yields.
With the rally, stocks, which fell 14.6% last year, have
erased their losses so far this year.
On Monday, Fitch affirmed the credit rating of some of
Nigeria's top lenders, lifting the banking sub-index
.NGSEBNK10 higher by 7.15%.
Nigeria's money markets are awash with liquidity after
foreign investors dumped local assets when the novel coronavirus
pandemic caused oil prices to crash earlier this year.
Offshore funds stuck in Nigeria due to poor dollar liquidity
to repatriate funds have held back from further sales, traders
say, adding that recent stock gains have been on thin volumes.
FBN Holding FBNH.LG , Access Bank ACCESS.LG , Oando
OANDO.LG , Lafarge Africa WAPCO.LG , United Bank for Africa
UBA.LG , Wema Bank WEMABAN.LG and Dangote Cement DANGCEM.LG
rose more than 9%.
A total of 38 companies advanced and eight firms declined,
while a hundred others saw no trades.

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