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UPDATE 1-Nigerian stocks climb to more than 7-month high as yields sink

Published 05/10/2020, 15:04
Updated 05/10/2020, 15:06
© Reuters.
GLAXOSM
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NGSEINDEX
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NGSEBNK10
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MTNN
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AAF
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(Adds details)
By Chijioke Ohuocha
ABUJA, Oct 5 (Reuters) - Nigerian stocks rose to their
highest in more than seven months on Monday after 11 straight
days of gains as excess liquidity on the money markets flowed
into equities, traders said.
The Nigerian stock index .NGSEINDEX climbed 2.11% to
27,554 points, its highest level since Feb. 21.
Domestic funds have been switching to equities after the
central bank last month unexpectedly cut interest rates to spur
growth in Africa's biggest economy, triggering a re-rating on
the stock market.
On Monday, Fitch affirmed the credit rating of four top tier
Nigerian lenders, lifting the banking sub-index .NGSEBNK10 by
3.58%.
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.
Yields on short-term treasuries have been stuck at historic
lows under 2% as a dollar shortage on the currency market has
limited trading.
Stocks have gained in thin volumes, traders say, as offshore
funds are willing to sell shares once they can access hard
currency to repatriate funds.
Drug maker GSK Nigeria GLAXOSM.LG rose the maximum 10%
allowed on the bourse, while Airtel Africa AIRTELAFRI.LG
climbed 5.32% and MTN Nigeria MTNN.LG rose 3.85%.
A total of 37 companies advanced and ten firms declined,
while a hundred others saw no trades.

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