Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

UPDATE 1-Nigerian stocks record biggest weekly fall in 8-years

Published 12/02/2021, 15:02
Updated 12/02/2021, 15:06
© Reuters.

(Adds details)
By Chijioke Ohuocha
ABUJA, Feb 12 (Reuters) - Nigerian stocks recorded their
biggest weekly fall in 8-years on Friday, as investors
anticipated a rise in debt yields after the government laid out
plans to borrow more on the domestic market.
Nigerian stocks had been rising since October with investors
shifting into equities after two interest rate cuts last year
and excess naira liquidity on money markets due to historic low
yields on the debt market.
The all-share index .NGSEINDEX , which rose 50% in 2020,
shed 3.04% this week, the most since July 2013. Stocks dropped
to 40,439.85 points on Friday, down 1.4% at a one-month low
following eight days of losses.
The government on Thursday approved plans to trim offshore
borrowings, in a new debt strategy, to strengthen domestic
markets over the next three-years. Analysts say local funds could pull out of equities.
At an open market Treasury auction on Thursday, investors
sought one-year yields as high as 13%, traders said, after the
central bank almost doubled the rate to 11.22% last week. Yields
traded close to zero last year. The central bank has been exploring ways to attract dollars
into Nigeria to support the currency and stimulate growth
following a recession without devaluing the naira, which could
further stoke double-digit inflation.
Analysts said renewed inflows into the local debt market
were being held back by the currency, especially with some
investors trapped in Nigeria amid a pause in central bank's
intervention on the spot market. Shares of five companies fell on Friday while 27 advanced
and another 100 recorded no trades.
Animal feeds maker, Livestock Feeds Plc LIVESTO.LG shed
9.78%. Clinker mixer BUA Cement BUACEMENT.LG fell 7.22% while
Dangote Cement DANGCEM.LG dropped 3.51% and MTN Nigeria
MTNN.LG was down 0.49%

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.