Dec. 9 (Bloomberg) -- Stanbic IBTC Bank Plc headed for the longest declining streak in more than 19 months as foreign investors exited the Nigerian equities market over the debt crisis in Europe, Kundila Finance said.
The stock of the Nigerian unit of Standard Bank Group Ltd. dropped for a seventh day, the longest retreat since April 2010, falling 4 percent, to 6.30 naira as of 12:25 p.m. in Lagos. A close at this price will be the lowest since September 2009.
“The problem we have now is that volume is foreign-driven and some of them are selling to balance their books at home,” Raheem Mohammed, chief operating officer of Lagos-based brokerage Kundila Finance, said by phone today. “If they are not buying what do you think will happen?”
European leaders are continuing their meeting today from yesterday in Brussels for talks to frame the fifth “comprehensive” solution in 19 months to a debt crisis that’s left Germany and France facing the threat of losing their AAA rating from Standard & Poor’s.
IBTC shares have lost 32 percent of their value this year, compared with a 22 percent decline in the Nigerian Stock Exchange All-Share Index over the same period.
--Editors: Peter Branton, Alex Nicholson
To contact the reporter on this story: Vincent Nwanma in Lagos at email@example.com.
To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at firstname.lastname@example.org.