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Foreigners Dismayed by Dollar Dearth Avoid Lagos Stock Rally

  • Gains spurred by locals snapping up dividend-paying blue chips
  • Currency risk discourages foreigners, RenCap’s Popoola says
Updated on

Lagos stocks have just wrapped up their best week since January, but it’s no thanks to foreign investors.

They have been steering clear of the market, resisting reduced valuations on some of Nigeria’s biggest companies, concerned that a shortage of dollars may restrict their ability to realize any profits. The country’s benchmark index jumped 7.2% last week, closing out a seven-day rally.