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New central bank forex window helps Nigerian stocks higher

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Nigerian stocks rose more than 2 percent on Monday after the central bank adopted a new policy allowing foreign investors to engage in foreign exchange trading at rates the buyers and sellers set.
The market all-share index closed at 2.21 percent to 25,747 points, lifted by Dangote Cement which accounts for a third of the market capitalisation.Image result for nigerian stock exchange
A central bank circular seen by Reuters said all people or businesses, local or foreign, who need dollars to repay loans, pay dividend, repatriate capital or settle trade-related obligations will be eligible for the new trading system. 

Traders said investors were optimistic that the rolling out of more efforts by the central bank to ease foreign exchange pressure on businesses would help the economy rebound.
“We hope to see some foreign investors retuning to the market in the wake of the implementation of the central bank new forex policy, which allows foreign investors to participate in trading in the fx market,” one stockbroker said.
Shares in local unit of Lafarge Cement rose 10.24 percent to close at 50.71 naira, which Diamond Bank was up 5.56 percent to 0.95 naira and Dangote Cement rose to 3.77 percent to close at 165 naira.
The Nigerian naira traded weaker at 390 to the dollar on the black market compared with 385 per dollar on Friday, while it gained marginally to 305.95 to the dollar on the official window from 306 a dollar previously.
© Reuters News

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