Nigeria’s Forte Oil Falls Most in Nine Months as MSCI Exit Looms

LAGOS (Capital Markets in Africa) – Nigerian fuel retailer and electricity provider fell 9.7 percent to 43.89 naira by Monday close in Lagos. Volume traded more than 3 times the daily average for past 3 months.

• Decline “may be related to investors’ reactions to the announcement of the complete removal of the stock from the MSCI Frontier Market Indexes,” Kikelomo Alatise, equity analyst at Lagos-based Meristem Securities, says by email
• Funds tracking stocks that were deleted including Forte Oil, or those reclassified, may begin gradual under-weighting of the securities, Chapel Hill Denham brokerage says in note
• NOTE: Morgan Stanley Capital International last week said it was removing or reclassifying some Nigerian stocks from the Main Frontier Markets Index and MSCI Frontier Small Cap Index, effective Nov. 30

Source: Bloomberg Business News