Bloomberg News

Nigeria’s Stock Index Heads for Worst Quarter in Almost 3 Years

September 30, 2011

Sept. 30 (Bloomberg) -- Nigeria’s stocks gauge fell, heading for the worst quarter in almost three years as concern that global growth will slow curbed demand for riskier assets.

The 198-member Nigerian Stock Exchange All-Share Index added 1.1 percent to 20,371.98 by 2:29 p.m. in Lagos, trimming its decline this quarter to 18 percent, making it sub-Saharan Africa’s second-worst performer in the three months, after Kenya’s gauge, which fell 20 percent. Ashaka Cement Plc, a unit of Lafarge SA, the biggest cement maker, climbed the limit of 5 percent, the most since Aug. 11, to 18.80 naira.

Emerging-market equity funds posted a ninth week of outflows, with withdrawals almost doubling from the previous period, as the Federal Reserve’s efforts to bolster the U.S. economy disappointed investors, Citigroup Inc. said today. Frontier-market stocks are headed for their worst quarterly slump since the three months through June as the U.S. economy faltered and the European sovereign-debt crisis spread.

“Nigeria is the most liquid of the other markets and it’s logical that in the sell-down, Nigeria would be more hit than the other markets,” Esili Eigbe, a Lagos-based analyst with Stanbic IBTC Bank Plc, said by phone today.

International investors account for as much as 70 percent of daily volume on the Nigerian bourse, according to data from the exchange. Nigeria’s naira depreciated to the weakest level on record against the dollar in interbank trading today, reaching 160.575, on mounting demand for foreign currency.

--Editors: Ana Monteiro, Vernon Wessels

To contact the reporter on this story: Vincent Nwanma in Lagos at

To contact the editor responsible for this story: Antony Sguazzin at

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