Nigerian stocks, NGSEINDEX, climbed to an eight-week high on Wednesday lifted by gains in shares of energy companies after global oil prices rallied.
Recovering after two days of losses, the main share index rose 1.04% to 24,141.48 points on Wednesday. The index of Nigeria’s top five .NGSEOILG5 oil and gas companies climbed 5.24%.
Brent crude LCOc1 was up 68 cents, or 1.5%, at $45.18 a barrel by 1350 GMT, after falling around 1% on Tuesday.
Seplat SEPLAT.LG, which is also listed in London SEPL.L, rose by 10% – the maximum allowed on the Lagos bourse. Energy firm Oando OANDO.LG and Total TOTAL.LG each rose more than 1%.
Oil’s rally on Wednesday followed an industry report showing U.S. crude inventories last week fell more than analysts had expected, bolstering expectations fuel demand in the world’s biggest economy can weather the COVID-19 pandemic.
Besides, however, the earnings season in Nigerian stock market kicked off late last month with investors watching results closely to determine the extent of the damage inflicted by the pandemic on businesses in the first half of the year.
A total of 18 firms advanced while 11 declined and more than 100 others recorded no trades.
Other top gainers were Cadbury and Airtel Africa, the third-biggest listed firm, which rose more than 9%.
Source: Nasdaq
