Reuters
Published Nov 14, 2019 17:28
UPDATE 1-Nigerian stocks rise as local funds snap up banking shares
(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%.
Written By: Reuters
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