Nigeria’s stocks headed for their lowest close in almost three years as foreigners exited the market amid fading hopes that President Muhammadu Buhari’s government can revive an economy growing at its slowest pace this century.
The Nigerian Stock Exchange All Share Index fell 1.2 percent to 27,294.27 at 1:36 p.m. in Lagos, the lowest on a closing basis since Dec. 2012. The gauge has declined on 18 out of 21 trading days in November and is headed for a monthly drop of 6.5 percent.
“The government has not come up with a definitive policy for the economy,” Pabina Yinkere, an analyst at Vetiva Capital Management Ltd., said by phone from Lagos. “The continued lack of clarity is affecting the stock market.”
While Buhari, a 72-year-old former general who came to power in May, has prioritized stamping out corruption in Africa’s biggest economy and oil producer, investors have been irked by a delay of more than five months in forming a cabinet, and his support for the central bank’s currency-trading restrictions that are choking businesses of the dollars they need to pay foreign suppliers. Read more