Nigerian stocks fell almost two percent on Wednesday, hit by a major decline in cement companies’ shares, including Dangote Cement, which accounts for the third of local bourse capitalisation.
The local bourse index dropped 1.81 percent to 24,070 points at 1221 GMT as investors took profits from previous gains on the stocks. “Due to the rapid decline of the naira’s value, some offshore investors are booking profit and selling down their holdings,” one stock broker said.
Shares in Dangote Cement fell 4.11 percent, Ashaka cement was down 4 percent while Cement Company of Northern Nigeria dropped 8.89 percent to drag the index down. Currency and stock markets have been hit hard by the persistent fall in crude oil, Nigeria’s main export, triggering a fall in government revenues and the exit of foreign investors from the local bourse. Read more