• Monday, May 27, 2024
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BusinessDay

Oil price war, coronavirus spark further selloffs in local equities

Oil

The persisting oil price war and coronavirus pandemic have continued to dampen the hope for equities market recovery in near term, thereby sparking further selloffs in local equities.

As at 12 noon Nigerian time, the value of stocks listed on the Bourse decreased by N196bilion, from a corresponding high of N11.747trillion, it stood at N11.551trillion. The NSE All Share Index (ASI) also printed low at 22,167.35points from day open level of 22,543.07points.

Market watchers had expected a mixed trading session when equity dealers assembled by 9:30am on Wednesday for trading market. Analysts expected continued sell offs in some counters and position taking in others due to recent declines.

Many investors continue to weigh the risks of holding naira assets as declining oil price is seen to pressure the naira against dollar. The reports that the Senate is mulling naira devaluation also guide stock traders in Wednesday session. Crude Oil price decreased to $27.71 as at 12noon.

Nigeria has confirmed five new cases of the coronavirus in four weeks but has not recorded any death. The latest cases bring the total confirmed cases so far to eight. All 5 cases had a travel history to the UK and USA according to the Nigeria Centre for Disease Control (NCDC).

The agency also urged Nigerians to remain calm as public health response activities are intensified across the country. Nigeria has placed travel restrictions to 13 countries. The countries include China, Italy, Iran, South Korea, Spain, Japan, France, Germany, the United States of America, Norway, the United Kingdom, Netherlands and Switzerland.  All travelers returning from these countries prior to the restriction will be in supervised self-isolation, monitored by Nigeria Center for disease control (NCDC) and Port Health Services.