Stock investors at the Nigerian Bourse lost about N85 billion on Tuesday March 17, 2020, as Dangote Cement, fell by the most allowable in a day, to its lowest price in four years.
The cement maker, which accounts for about 21 percent of the entire market capitalisation, fell by 10 percent to close at N137.7 a unit, a level last seen in February 2016.
The decline in Dangote Cement offset gains in Access Bank (10%), United Capital (10%), Cadbury (9.62%), FCMB (9.66%), Union Bank and Wema Bank (9.09%), to drag the market’s year-to-date return to -16.02 percent.
There is renewed fear of Coronavirus (COVID19) following its third case in Lagos, the country’s business capital.
The Nigerian citizen returned into the country on March 13 from United Kingdom, one of the COVID19 high risk countries like Italy and the United States.
Besides the aviation and tourism sectors, COVID19 has also crippled international trade and rocked the capital market, with stock prices and bond plunging. Oil price neared $30 per barrel as global recession fears escalated.
The value of stocks listed on the Nigerian Stock Exchange (NSE) decreased to N11.747trillion as against preceding day high of N11.832trillion.
The NSE All Share Index (ASI) also printed low at 22,543.07 points from a high of 22,705.19 points the preceding day.
In 7,368 deals, investors exchanged 675,910,797 units valued at N8.059billion.
“Given that there is no improvement in global outlook –depressed oil prices and the coronavirus pandemic –we think there is still a possibility of further declines,” said analysts at Coronation Research.
The impact of the coronavirus outbreak on Nigeria’s economy is likely to be significant, as it is poised to take a toll on critical economic sectors, analysts say.
“The situation is being made worse by the slide in crude oil prices as a result of a crude price war between Saudi Arabia and Russia”, said Mosope Arubayi’s team of analysts at Lagos-based Vetiva.
