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Financials

CORRECTED-Nigerian stocks fall for seventh session to one-month low

(Correct year in second para to 2019 from 2018)

LAGOS, Dec 10 (Reuters) - Nigerian stocks fell to their lowest level in a month on Tuesday after shedding 1.11% as shares of the two most capitalised companies Dangote Cement and MTN Nigeria declined.

The index, which is down 15% this year, fell for the seventh straight session to a level last seen in November 2019, as consumer goods firms lost 2%.

The bourse’s losing streak worsened after ratings agency Moody’s late on Friday changed the outlook of some Nigeria’s top lenders and corporates, including Dangote Cement, to negative from stable.

The ratings agency said the action was triggered by a downgrade of Nigeria’s sovereign outlook from stable to negative as the country was yet to fully recover from a 2015 oil price shock and a subsequent recession in 2016.

Dangote Cement, which accounts for about a third of market capitalisation, fell 1.41% while the local unit of South African telecoms giant MTN, the second most capitalised company on Nigeria’s bourse, shed 1.69%.

Moody’s expects annual GDP growth of just over 2% in Nigeria over the next few years, which it says is insufficient to create big lending opportunities for banks and strong corporate earnings. (Reporting by Chijioke Ohuocha, Editing by William Maclean)

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