By Yemisi Izuora-Lagos
Nigeria’s PZ Cussons crashed almost a tenth of their value after its London-listed parent reported a drop in half-year profit.
The crash was attributed to tough trading conditions in the west African country and a devaluation of its currency.
PZ Cussons, the Nigerian unit of British soap and shampoo maker PZ Cussons Plc, fell 9.72 percent to 29.82 naira per share, underperforming the local bourse which was down 2.1 percent.
The stock had previously shed 10.7 percent this year as foreign investors have been selling out of the Nigerian banking, consumer and oil sectors as the price of Brent crude – the benchmark against which the country’s oil is priced – has plunged.
Reuters report indicated that the drop in oil prices has put Nigeria’s currency under pressure and dampened appetite for assets in Africa’s biggest economy and chief oil exporter, prompting the central bank to devalue the naira by 8 percent to halt a slide in its foreign reserves.
Parent Cussons’ operating profit fell 4 percent in the first half.
The maker of Imperial Leather soaps said potential further volatility in Nigeria’s currency and the upcoming presidential elections in Nigeria could affect full-year results.
Africa accounted for about 42 percent of the company’s revenue in the year ended May 31, with Nigeria its biggest market.
Other decliners on Nigeria’s bourse during the week included oil and gas firm Seplat, which was down 5 percent and conglomerate Transcorp, which fell 4.99 percent. Dangote Cement was down 3.6 percent.