Nigeria Stocks End Longest Losing Streak in 3 Years on Valuation

Nigerian stocks advanced, snapping a 10-day decline, as falling valuations attracted investors.

The Nigerian Stock Exchange All-Share Index rose 1.2 percent to 38,662.65 at the close in the commercial capital Lagos, its biggest gain since May 30. Of 195 shares, 35 appreciated, 19 fell and 141 were unchanged. The gauge traded at 9.4 times estimated 12-month earnings, compared with 10.6 for the MSCI Emerging Markets Index.

Nigeria equities have fallen 10 percent since touching a six-year high on July 16. Crude oil, the source of about 80 percent of Nigeria’s budget revenue, dropped 26 percent in London since June 19. The Nigerian SE Banking Index, which tracks the nation’s 10 largest lenders, gained 2.9 percent today. Guaranty Trust Bank Plc advanced 2 percent while FBN Holdings jumped 6.6 percent.

“Some of the stocks are looking very attractive on valuation, after coming down in their prices,” Adewale Okunrinboye, an analyst at Lagos-based Asset & Resource Management Co., said by phone. “Investors are doing bottom fishing on mostly banking stocks that are cheaper than their emerging-market peers.”

The naira was little changed at 165.35 per dollar, leaving it 2.1 percent weaker over the past three months.

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