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Nigerian stocks rise to one-week high on hopes recession will be short-lived

Published 25/11/2020, 15:47
© Reuters.
ETERNAO
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FCMB
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FLOURMI
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MANSARD
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MAYBAKE
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TRANSCO
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NGSEINDEX
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NGSEFBT10
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NGSEBNK10
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ABUJA, Nov 25 (Reuters) - Nigerian stocks climbed to a
one-week high on Wednesday after the central bank expressed
optimism that it expected a recession in Africa's biggest
economy to be short-lived, citing a smaller than forecast
contraction in the third quarter.
The all share index .NGSEINDEX rose 1.25% to 34,769
points, a level last seen on Nov. 19, lifted by the banks
.NGSEBNK10 and consumer goods .NGSEFBT10 stocks.
The Nigerian economy slipped into a recession in the third
quarter, causing stocks to decline to a two-week low on Monday,
while the currency eased on the black market due to dollar
shortages in the country.
Central Bank Governor Godwin Emefiele, however, said on
Tuesday that the contraction in growth had bottomed out after
the third quarter shrunk less than the second quarter. He
expected the recession to end by the first quarter next year.
Stocks had been rising since last month to become the
world's best performing after the central bank unexpectedly cut
interest rates the previous month to spur growth. The bank kept
rates on hold on Tuesday.
Shares of a total of 37 companies gained on Wednesday while
12 declined and another 100 recorded no trades.
Drugmaker May & Baker MAYBAKE.LG rose 10%, the maximum
allowed on the bourse, while energy firm Eterna Oil
ETERNAO.LG , Flourmills FLOURMI.LG , Axa Mansard MANSARD.LG ,
Transcorp TRANSCO.LG , FCMB FCMB.LG among others climbed more
than 9.5% each.

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