Reuters
Published Feb 03, 2020 16:06
Nigerian stocks fall to 3-week low as funds exit
By Chijioke Ohuocha
ABUJA, Feb 3 (Reuters) - Nigerian stocks declined 1.08% on
Monday to a more than three-week low as investors sold off
shares from across the board after weak sentiment hit equities.
The main share index .NGSEINDEX fell for the sixth
session, down to 28,533.40 points. The relatively liquid banking
sector .NGSEBNK10 declined the most, falling 3.85%.
Equities have been hit by weak sentiment, traders say,
worsened by fears that the coronavirus outbreak would hit
Chinese demand, one of Nigeria's major trading partners, and
dampen growth.
Nigeria has grappled with low growth since recovery from
recession four years ago. President Muhammadu Buhari, who began
a second four-year term in May, has pledged to revive the
economy. But investors have been waiting for policy signals that
could lift growth. On Friday, the United States issued a travel ban targeting
prospective immigrants from Nigeria and five other countries, a
move that could affect thousands of people, further worsening
sentiment. Stocks, which fell 14.6% last year, started to recover this
year, thanks to higher oil prices and as domestic funds pile
into shares. However, with the U.S. visa policy and the
coronavirus outbreak, fears over local growth have surfaced.
A total of 24 stocks declined while only eight advanced on
low volumes. Two companies traded flat while more than 100
others recorded no trades.
Sterling Bank STERLNB.LG and Cadbury CADBURY.LG shed
more than 9% while First Bank FBNH.LG and Access Bank
ACCESS.LG both declined more than 8%.
Last year, foreign investors bought fewer stocks than the
previous year, stock exchange data showed, after hopes faded for
reforms that could lift Africa's biggest economy.
Written By: Reuters
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