(Adds index closing, analyst comments)
By Chijioke Ohuocha
ABUJA, Oct 30 (Reuters) - Nigerian stocks soared to a more
than 16-month high on Friday as funds piled into equities,
propelled by low interest rates and as early third-quarter
corporate earnings showed some companies have weathered the
impact of the COVID-19 crisis, traders said.
The all share index .NGSEINDEX rose for a sixth straight
session to be up 30,530.69 points or 3.71% to a level last seen
in June last year.
Banks and consumer goods companies led the gainers. The
index of Nigeria's top 10 consumer goods stocks .NGSEFBT10
gained 5.58% while the banking sector .NGSEBNK10 rose 3.48%.
Nigerian stocks started to rally in October after the
central bank cut interest rates and as money market liquidity
flowed into equities.
Yields on T. bills fell below 1% this week, making equities
a clear choice for investors especially given double-digit
inflation, said Ahmed Jinad, head of research at Meristem
Securities.
Nine-months company results have started to trickle in and
some firms have reported higher than expected earnings, helping
douse concerns over the impact of COVID-19, Jinad said.
"The impact has not been as severe. So far nine-months have
picked up mostly in the foods and telecoms sectors," he said.
A total of 40 stocks advanced and eight declined, while 100
saw no trades.
Paint maker CAP Plc CAP.LG , flour mixer Northern Nigeria
Flour Mills NNFM.LG , insurer AXA Mansard MANSARD.LG , brewer
International Breweries INTBREW.LG and Nestle NESTLE.LG led
the gainers, rising the maximum 10% allowed on the bourse.