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UPDATE 1-Nigerian stocks drop to 10-week low, banks fall

Published 09/03/2021, 15:28
Updated 09/03/2021, 15:30
© Reuters.
ETERNAO
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UBA
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NGSEINDEX
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NGSEBNK10
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MTNN
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(Adds index close, details)
ABUJA, March 9 (Reuters) - Nigerian stocks dropped to a
10-week low on Tuesday, as banking shares fell and yield-hungry
investors eyed debt for returns, traders said.
The all-share index .NGSEINDEX , which rose 50% in 2020,
shed 1.8% on Tuesday, the most in one day since December. The
index of Nigeria's top 10 banking shares .NGSEBNK10 shed 5.3%.
Stocks had been rising since October as local funds moved
into equities following two rate cuts last year, and as excess
naira flooded money markets due to historically low yields on
the debt market.
But they began losing ground last month - despite a rise in
oil prices and higher dividend yields following 2020 year-end
results - as yields on Treasury bills are set to rise.
At an open market Treasury auction in February, the central
bank nearly doubled the yield it was paying, which had been
close to zero last year, in order to lure foreign investors. A
re-rating of equities followed.
Shares in 26 companies fell on Tuesday, while 14 advanced
and another 100 recorded no trades.
Eterna Oil ETERNAO.LG and UBA UBA.LG shed 10%, the
maximum allowed on the bourse. MTN Nigeria MTNN.LG , the second
biggest listed firm, fell 5.88%.

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