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Nigerian stocks fall to 3-week low as funds exit

Published 03/02/2020, 16:06
Updated 03/02/2020, 16:10
© Reuters.  Nigerian stocks fall to 3-week low as funds exit

© Reuters. 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.

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