Nigerian
stocks fell to a four-month closing low of 40,537 points on Tuesday, as a
weaker naira hurt by falling global oil prices dampened appetite for equities,
dealers said.
The
index shed 1.1 percent on the day to its lowest closing level since May 28,
dragged down by heavyweight banking and cement stocks.
Shares
in Dangote Cement, Nigeria’s most capitalised stock, shed 1.73 percent to 221
naira, while Zenith Bank fell 3.64 percent to 23.80 naira.
Bond
yields also rose as offshore funds sold naira assets, dealers said.
“It
was a red day for the Nigerian bourse. We think the current negative market
sentiment will persist into tomorrow’s session,” Vetiva Capital wrote in a
note.
Yields
on Nigeria’s 2024 bond, latest addition to a JP Morgan emerging market
government bond index (GBI-EM), rose two basis points in the course of two days
to 12.34 percent, after rising 37 basis points over the past month.
The
naira closed at 163.80 against the greenback, below the three-month low of
163.45 naira it touched a week ago, over doubts on central bank’s ability to
support the currency against a backdrop of declining global oil prices and
higher demand for dollars.
Brent
crude fell below $98 a barrel on Monday, dropping for the third session in
four, as sluggish demand and ample supplies outweighed expectations of a cut in
oil output from the Organization of the Petroleum Exporting Countries (OPEC).
Other
top decliners include the local unit of British drug maker GSK, down 7.69
percent, while Guaranty Trust Bank and FBN Holdings both lost more than 1.6
percent.
Businessday
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