LAGOS, June 22 – Nigerian shares extended falls for the second day as sentiment started to weaken amid the possibility that index provider MSCI will downgrade Nigeria later in the year.
The main index shed 2.05 percent to 32,791 points, dragged down by its relatively liquid banking sector which fell 3.44 percent. Stocks had been gaining since May on central bank currency moves.
Banking shares have been spooked after talks between a group of lenders and telecoms firm Etisalat Nigeria over a debt renegotation collapsed.
Wema Bank, fell 8.96 percent to lead the banking sector lower, followed by Ecobank down 8.47 percent and Diamond Bank 8.2 percent