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UPDATE 1-Nigeria stocks rise to six-month high, lifted by rate cut

Published 25/09/2020, 15:01
Updated 25/09/2020, 15:06
© Reuters.

(Adds details, stocks)
ABUJA, Sept 25 (Reuters) - Nigerian stocks rose to a
six-month high in late Friday trading as funds switched into
equities after the central bank this week unexpectedly cut
interest rates to spur growth in Africa's biggest economy.
Local stocks .NGSEINDEX made minor gains during the week
before rising 1.28% on Friday to close at 26,319.47 points.
Nigeria's top 10 lenders .NGSEBNK10 and the index of
consumer goods stocks .NGSEFBT10 rose more than 2%.
The central bank on Tuesday cut interest rates by 100 basis
points to 11.5% to support an economy that contracted in the
second quarter. Analysts fear the additional liquidity created
by the rate cut could pile pressure on the local
currency. One pension fund manager told Reuters that his fund was
increasing its equity allocation to a maximum of 25% from 14% to
hedge against rising inflation, adding that the rate cut had
taking the shine out of the bond market.
Nigerian Breweries NB.LG , led gainers on Friday with a
rise of 9.82%. Heavyweight Dangote Cement DANGCEM.LG was up
2.28%.

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