Bloomberg News

Nigerian Stocks Have Longest Weekly Losing Streak Since 2008

September 12, 2011

Sept. 9 (Bloomberg) -- Nigerian stocks fell for a second straight day, extending the longest run of weekly losses since 2008, as oil declined and concern deepened the global economic recovery is faltering.

The Nigerian Stock Exchange All-Share Index, which tracks the performance of 198 shares in Africa’s biggest oil producer, tumbled 1.2 percent to 21,104.1 by the 2:30 p.m. close in Lagos, according to a statement on the bourse’s website. The gauge has dropped 2.3 percent this week, the seventh straight decline and the longest slump since a nine-week rout ended Nov. 7, 2008, according to data compiled by Bloomberg.

Emerging-market stocks retreated after U.S. President Barack Obama’s $447 billion jobs plan failed to ease concern that the global economy is slowing. European Central Bank President Jean-Claude Trichet said yesterday “downside risks” for the region’s economies have risen.

Global risk aversion is causing investors to shun Nigerian equities, Bunmi Asaolu, head of equity research at FBN Capital Ltd., said in e-mailed comments today.

Oil dropped 2.4 percent, the most in a week, to $86.95 a barrel in New York.

Dangote Cement Plc, Nigeria’s largest company by market value, slid 2.9 percent.

Dangote Sugar Refinery Plc, Nigeria’s biggest producer of the sweetener by market value, fell for the first time in three days after Vetiva Capital Ltd. cut its recommendation to “neutral” from “accumulate.” The stock lost 10 kobo, or 1 percent, to 9.5 naira.

--With assistance from Vincent Nwanma in Lagos. Editors: Ana Monteiro, Emily Bowers

To contact the reporter on this story: Chris Kay in London at ckay5@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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