Nigerian stocks hit 2-week high after central bank sets new FX rules

Nigerian stocks hit two-week highs on Thursday, rising 2.6 percent after the central bank introduced new currency rules designed to attract foreign investors.
The main share index rose to 28,606 points by 1159 GMT, pushed up by a 3.05 percent gain in the banking sector, to a level last seen on May 31. Unity Bank rose 9.26 percent and Wema Bank gained 6.33 percent.
Stocks had jumped 3.17 percent after the new currency rules were announced on Wednesday.
"The market is reflecting a positive outlook for the banking sector in view of the new policy. Investors anticipate that banks would be able to convert the opportunity to increase profitability," stock broker Rasheed Yusuf said.
On Wednesday the central bank said it would begin market-driven foreign currency trading next week, abandoning its 16-month peg against the dollar, which has harmed investments and dried up banks' currency dealing.
The central bank previously pegged the naira at 197 to the U.S. dollar but the currency trades about 50 percent weaker than that on the black market. A slump in oil revenues has hammered public finances and foreign currency reserves.

*First published by Reuters