Published On: Wed, Aug 2nd, 2017

Nigeria stocks shed 1.1 pct as euphoria over Dangote deal fades

Nigeria’s stocks shed 1.09 percent in late trades on Wednesday as euphoria over Dangote’s $236 million stake sale in his cement business to foreign buyers faded, traders said.

Dangote Industries Limited, owned by Africa’s richest man Aliko Dangote, sold a 2.3 percent stake in Dangote Cement to some foreign funds on Tuesday which lifted a stock index that had started to decline.

Dangote Cement, which accounts for a third of total market capitalisation, shed 5 percent to 228 naira on Wednesday, after the main shareholder sold the stake at a discount of 210 naira.

The fall helped drag the index down to 36,321 points by 1252 GMT. Stocks had gained for the 16th straight day, posting their longest winning streak in more than two-years, until Friday.

Other decliners were palm oil maker Okumu Oil down 5 percent, fuel retailer Mobil and aviation services firm NAHCO both down more than 4.8 percent.