Nigerian stocks gained the most since May 30 closing 1.3% higher at 33,670.75. This is now the second day running that it has gained after going on a 12 day losing streak, the longest in half a dozen years.
A total of 46 shares rose, 12 fell and 137 were unchanged. Gains were across sectors ranging from Banks to manufacturers and energy companies with 22 stocks rising 5 percent or more.
Analyst interviewed in a Bloomberg article gave the following possible reasons for the rally.
The resurgence is likely due to the perceived bottoming-out of most of the stocks……That’s driving investors to take opportunities quickly.
However, the article also confirmes some analyst still believed this may prove short-lived if oil prices don’t stabilize or recover.
After the euphoria, most people will want to take profits,” he said. “That’ll lead to another downward trend.