UPDATE 1-Nigerian stocks rise as local funds snap up banking shares

Published 14/11/2019, 17:28
© Reuters.  UPDATE 1-Nigerian stocks rise as local funds snap up banking shares
ACCESS
-
FBNH
-
FCMB
-
WEMABAN
-
NGSEBNK10
-

(Adds details, analyst comment)

By Chijioke Ohuocha

ABUJA, Nov 14 (Reuters) - Nigerian stocks rose 1.84% to a

five-week high on Thursday, powered by banking shares, as local

investors shut out of a treasury auction poured money into

shares instead.

The index, which is down 16% so far this year, rose to a

level last seen in October, as Nigeria's top 10 banking shares

.NGSEBNK10 jumped 7.04%.

The central bank last month barred local investors from

participating in its Treasury bill auctions, in a bid to draw

more foreign interest to boost dollar liquidity and prop up the

naira.

On Thursday, the central bank auctioned 300 billion naira

worth of open market securities, traders said. But with local

investors shut out of the sale - the second since the ban was

introduced - they had to seek alternative places to park their

money.

One fund manager, who said he had been investing in cash and

bank deposits since the central bank announcement, said he

thought the treasury auction ban could be relaxed soon as excess

liquidity affects the markets.

Shares in 31 companies rose on Thursday on the bourse, which

has had a mixed performance this year, while just three

declined.

Access Bank ACCESS.LG , which completed a takeover of local

rival Diamond Bank in April, gained 9.6%. Access is up 43% year

to date. FBN Holding FBNH.LG , FCMB FCMB.LG , Wema Bank

WEMABAN.LG , each rose more than 9%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.