Nigerian stocks gained almost two percent in early trade on Monday, just as the local currency, Naira weakened on the parallel market amid a shortage of dollars.
The Nigerian stock index gained 1.73 percent to 30,202 points, lifted by rising prices of banking, breweries, cement and petroleum shares.
The naira fell 0.67 percent on the unofficial market on concern about possible devaluation of the naira in the weeks ahead. It was quoted at 224 to the naira compared with a closing 222.50 per dollar on Friday at bureaux de change.
The currency was trading at N197.50 to the dollar on the official interbank market, slightly weaker than the N197 to the dollar pegged rate where it has closed since February, when the central bank introduced exchange controls in the forex market.
Dangote Cement, Nigeria’s biggest listed company, rose 0.3 percent to N168, while the local unit of Diego, Guinness Nigeria, rose 7.58 percent to N164.01.
Seplat gained 1.76 percent to N230, First Bank Holdings rose 3.15 percent to N6.13 and Ecobank Transnational advanced 4.13 percent to N17.95.
The Nigerian index sold off last week after US investment banker JP Morgan announced it would remove Nigerian bonds from its Government Bond Index (GBI-EM) in October.
Local investors saw a buying opportunity as prices fell. “Some investors are taking position in the market because they considered the present prices of stocks very attractive to buy,” one stock broker said.
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