The naira weakened a fourth day and Nigerian stocks fell to the lowest since April 2013 as sliding oil prices weighed on local assets with elections nine weeks away.
The currency fell 0.6 percent to 183.55 per dollar by 4:11 p.m. in Lagos, the commercial capital, the lowest on a closing basis since Dec. 1. Banks and manufacturers pushed the Nigerian Stock Exchange All Share Index (NGSEINDX) 0.4 percent lower to 32,932.49. In London, Brent futures fell a sixth day.
Foreign investors have become wary of Nigeria, which derives more than 90 percent of export earnings from oil, according to the Organization of the Petroleum Exporting Countries. They’ll probably stay cautious before the vote on Feb. 14, according to Lanre Buluro, head of research at Primera Africa Securities Ltd.
“In this market, everything is correlated to the oil price,” he said by phone from Lagos. “Some of the bearish sentiment will continue into next year, at least until after the elections are over.”
United Bank for Africa Plc, Nigeria’s third-largest lender, fell 4.9 percent to 4.51 naira. Union Bank of Nigeria Plc, Transnational Corp. of Nigeria Plc and Seplat Petroleum Development Co. each dropped 5 percent. Seven stocks rose, 40 decreased and 148 were unchanged.
Credit: Bloomberg