Nigerian stocks rise for second day

Nigerian stocks advanced for a second day in Lagos trading, with shares of banks and building materials companies among the biggest movers.

The Nigerian Stock Exchange All-Share Index, the broad measure of the market performance, rose by 786 points, or 3.4 percent, to close at 23,924 points, according to data taken from the Nigerian Stock Exchange’s Web site. The exchange revised its figure for yesterday’s close from 23,984.81 points to 23,137.51 points, without providing a reason.

Benue Cement Co. rose by the maximum daily limit of 5 percent, to close at 37.80 naira per share. Benue is rising on investors’ expectations that the cement- maker’s profit will spur gains in the share price, said David Adonri, a trader at Lagos-based brokerage Lambeth Trust and Investment Co.

“The company’s performance in the last quarter and its forecast give investors an impression that their payment of dividends will be impressive,” Adonri said in an interview today.

First Bank of Nigeria Plc, the country’s biggest lender, gained 0.71 naira, or 5 percent, to close at 14.99 naira. The bank gained the maximum 5 percent yesterday. First Bank plans to sell 500 billion naira ($3.3 billion) of bonds to fund its operations, ThisDay newspaper reported yesterday, citing unidentified people familiar with the matter.

There was “strong demand for banking stocks, with virtually all of them trading to their limit, with significant outstanding volumes” of buy orders, Renaissance Capital said in an e-mailed note to clients.

Source: Bloomberg