By Chijioke Ohuocha
ABUJA, May 13 (Reuters) - Nigerian stocks dropped 1.26% to a near two-year low on Monday on renewed growth worries after Godwin Emefiele was nominated for a second term as central bank governor, traders said.
Nigeria, sub-Saharan Africa’s largest energy producer, entered and exited its first recession in a quarter of a century under Emefiele’s tenure, as global oil prices plummeted and then gradually began to rebound.
The main share index fell to 28,484 points, a level not seen since May 2017.
Emefiele was nominated on Thursday for a term of five years, triggering profit-taking on the stock market. Shares fell on expectations that tight monetary policy which has limited growth under Emefiele would continue.
The governor has overseen an interventionist currency policy at the behest of the presidency, supporting the naira by pumping billions of dollars into the foreign exchange market and keeping liquidity tight to lure investors into the bond market.
Stocks, on the other hand, touched a near two-year low on Friday as investors viewed President Muhammadu Buhari’s nomination as a possible sign that having won re-election in February, he would maintain policies that have contributed to a low growth rate, analysts said.
The index of Nigeria’s top 10 lenders fell 2.8% while oil stocks declined 1%. Dangote Cement , which accounts for a third of market capitalisation, shed 0.28%, to help drag the index lower. (Reporting by Chijioke Ohuocha; Editing by Catherine Evans and Stephen Powell)