Nigeria Stocks Shed US$1 Billion as Energy Shares Slide

Nigeria's stock market experienced a significant drop of about US$1.0 billion on Thursday, October 8th, as a result of selling pressure on oil and telecom shares in Lagos. The benchmark NGX All-Share Index fell by 0.82% to 248,042.50 points. The total value of listed equities decreased by ₦1.33 trillion (approximately US$1.0 billion) to ₦161.05 trillion (around US$120.9 billion).

Energy shares took the brunt of the selling, with the NGX Oil/Gas Index dropping 3.87% to 5,996.24. Aradel Holdings, a Nigerian oil and gas producer listed on the exchange, fell by the maximum allowable 10% daily limit, closing at ₦1,377 (US$1.03) from ₦1,530 (US$1.15). Eterna Plc, a Nigerian fuel marketing and distribution company, also saw a 10% decline, closing at ₦41.40 (US$0.03) down from ₦46.00 (US$0.03).

MTN Nigeria, the local unit of South Africa's MTN Group, dropped 3.54%. Lenders Fidelity Bank and United Bank for Africa slipped 4.96% and 1.12%, respectively. The market saw more losers than gainers, with 32 out of 57 stocks dropping in value. This decline marked the seventh losing session in a row, though analysts suggest it was more about profit-taking and portfolio rebalancing ahead of the third-quarter earnings releases, which are due for publication.

The market remained busy despite the decline, with about 492 million shares changing hands in 38,711 deals, valued at ₦38.02 billion (US$28.6 million). The currency steadied slightly, with the official naira-to-US dollar exchange rate moving from ₦1,331.27 to ₦1,331.60 between October 7th and 8th, making the market's slide equivalent to a US$0.82% fall.