Nigeria stocks rise for third day as local funds buy shares

Nigeria's index rose for the third straight session after a 12-day sell-off, as domestic investors snapped up relatively cheaper consumer and oil and gas stocks dumped by foreign funds, stockbrokers said on Wednesday.
Foreign investors, who dominate trades on the Nigerian bourse, have been pulling money out after the price of oil collapsed and the naira currency weakened.
Brokers said the sell-off drove stocks to new lows, which spurred buying interest from local pension and retail investors.
The all-share index had climbed 0.84 percent to 33,951 points at 1124 GMT. The index shed 11.5 percent last week and is down 18.5 percent so far this year.
"We've seen a rebound in all the sectors apart from cement," said Akintola Akinbamidele of Renaissance Capital.
"On Friday we saw the central bank aggressively push the exchange rate into a comfortable range, reiterating its commitment to keeping the naira stable. This brought about renewed interest in the market."
Nigeria's central bank has vowed to defend the currency despite a drop in oil prices that has unnerved foreign investors and sent local financial markets into a tailspin.
"We are seeing some recovery as local investors ... take advantage of the low prices to increase their holdings," Yusuf Rasheed, a stockbroker told Reuters.
Nigeria's index of top 10 consumer goods stocks was up 1.81 percent, while the oil and gas stocks climbed 3.97 percent.
Top gainers included conglomerate Transcorp Cussons, Cadbury and Oando, which were each 10 percent higher, the maximum daily limit.
But Dangote Cement, which accounts for around a third of total stock market capitalisation, bucked the trend, shedding 0.25 percent after it cut cement prices and sending its shares to an 18-month low of 169.74 naira.