The Nigerian Stock Exchange (NSE) All Share Index fell for a 13th day in the longest streak of losses since January 2009 to the lowest level since April 2013.
The naira, which rallied 2.5 percent against the dollar on November 7 after the central bank sold foreign exchange, declined as much as 2.8 percent against the greenback.
“The rate of decline in the stock market this week will slow” after last week’s almost 12 percent slide, Ayodeji Ebo, the head of research at Afrinvest West Africa in Lagos, said by phone.
“Selling panic by local investors has compounded the pressure of foreign direct investments that were exiting the market.”
More than $8 billion was wiped off the Nigerian bourse’s market capitalisation last week, reducing the value to $64.5 billion (R722 billion), according to data compiled by Bloomberg.
Nigeria is facing lower export earnings after the average crude price among members of the Organization of Petroleum Exporting Countries dropped below $80 for the first time in four years.
The all-share gauge fell 0.4 percent to 33,100.48 as of 12:30 pm in Lagos, after earlier slipping as much as 1.7 percent, with 28 stocks down, 21 up and 146 unchanged.
Dangote Cement, Stanbic IBTC Holdings and Lafarge Africa led decliners.
“A lot of stocks are presenting very impressive buying opportunities for long-term investors,” Ebo said.
Share prices for companies including Dangote Cement, FBN Holdings and Guaranty Trust Bank are not reflective of company earnings, he said.
The naira ended a five-day decline on November 7 after Deputy Governor Sarah Alade said the central bank was selling dollars to the market.
The currency weakened 1.1 percent to 167.45 per dollar, extending its drop this quarter to 2.2 percent, the third-worst performer among 24 African currencies monitored by Bloomberg.
The central bank is monitoring the market trends and is “committed” to defending the naira, Ibrahim Mu’azu, a spokesman for the Central Bank of Nigeria, said by phone today from the capital, Abuja.
The regulator hasn’t made a decision to intervene yet today, he said.
Culled from: Bloomberg News