Nigeria stocks fall as demand wanes ahead of earnings season

Nigerian stocks shed 0.87 percent in late trading on Monday as demand for equities waned and investors stayed on the sidelines waiting for earnings season to start in three weeks, traders said.

Stock declined towards 44,000 points, as bears dominated activity and sellers took profits.

The main index is up 16.7 percent so far in January, however, extending last year’s 42 percent gain.

Dangote Cement, which accounts for about a third of market capitalisation, shed 2.88 percent

Traders said investors who were initially underweight Nigerian equities spent most of last month building their positions. But now appetite has waned as most await year-end results due in March.

Some foreign investors spooked by Nigeria’s capital controls stayed on the sidelines last year before the central bank floated the naira for them.

Nigerian Stock Exchange CEO Oscar Onyema has said he expected corporate earnings to lift equities this year, despite currency and political risks, after stocks crossed 44,000 points three weeks ago to hit a nine-year high.

Credit: Reuters.