ABUJA: Nigerian stocks fell to a two-week low on Monday after third-quarter data showed the economy was in recession, while the currency eased on the black market due to dollar shortages in the country. The all-share index recovered some ground after falling during mid-day trades, but still closed down 0.04% to 34,121.78 points, led by banks, down 4.72%.
The index of Nigeria's consumer goods and oil stocks fell more than 1.6% each. The naira fell to as low as 484 per dollar on the black market, traders said. On the official market, it trades around 381 naira. The currency has come under pressure on the black market as central bank policies restrict access to the official window for some imports, thereby funneling demand to the unofficial market, traders said.
A total of 45 companies declined on Monday while five gained and another 100 recorded no trades. Lafarge Africa, Honeywell Flourmills and Transcorp, among others, each declined 10%, the maximum allowed on the bourse, while energy firm Oando shed 9.97%.
Nigeria slipped into a second recession in four years in the third quarter, data released on Saturday showed, blaming the impact of the Covid-19 pandemic and low oil prices, amidst double-digit inflation.
Stocks had been rising since last month to become the world's best performing after the central bank unexpectedly cut interest rates the previous month to spur growth, triggering a re-rating on equities.
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