Nigeria's stocks rise 3 pct in early trade, bucking global trend

Nigerian stocks closed almost 4 percent higher on Wednesday, a dramatic recovery after two weeks of declines, as bargain hunters took positions in the market.
The gains bucked the trend by global stocks, which sank to their lowest levels since July 2013 as oil prices slumped to 13-year lows. The losses left equity markets on track for one of their worst monthly performances ever,
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) [nL8N1542PI].
"Value stocks are getting more attractive with prices at ridiculously low levels," United Capital said in a research note on Wednesday.
The index of Nigeria's top 10 banksrose 8.07 percent to lift the index.
Dangote Cement, which accounts for a third of the market capitalisation, rose 4.36 percent. FBN Holdings jumped 10.19 percent, Guaranty Trust Bank rose 10.18 percent and energy company Oando gained 8 percent.
Other gainers include PanAfrican banking group Ecobank Transnational Inc., up 4.93 percent; Nestle, up 5 percent; and PZ Cussons, up 4.98 percent.