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LequteMan
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Nigerian stocks on Wednesday made a dramatic recovery to close almost 4 percent higher after depreciating for nine straight days.
Nigeria's all-share index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, rose to 23,335 points, up 3.91 percent. It had dropped below the psychologically important 23,000-point line on Monday, reaching lows last seen in July 2012.
Dealers said some investors considered the market oversold and its current level attractive for re-entering the market. In the past year, foreign investors, who account for more than half the activity on the Nigerian market, sold stocks with a net value of 514 billion naira ($2.58 billion).
"Value stocks are getting more attractive with prices at ridiculously low levels," United Capital said in a research note on Wednesday.
Reuters
Nigeria's all-share index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, rose to 23,335 points, up 3.91 percent. It had dropped below the psychologically important 23,000-point line on Monday, reaching lows last seen in July 2012.
Dealers said some investors considered the market oversold and its current level attractive for re-entering the market. In the past year, foreign investors, who account for more than half the activity on the Nigerian market, sold stocks with a net value of 514 billion naira ($2.58 billion).
"Value stocks are getting more attractive with prices at ridiculously low levels," United Capital said in a research note on Wednesday.
Reuters
