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The Nigerian stock market has opened this morning (9:30am), but there are no indication that a now fading sense of panic over oil price dip may cause investors to raise equities wager.
“There is a whole lot of confusing presently. Everybody is looking for safe haven. Market has lost over 2percent this morning. Everybody is worried over what the future holds. The possibility of recouping the loss is very remote. Though I believe there is still hope for us here in Nigeria,” said a dealing member on the Nigerian Stock Exchange (NSE).
“There is a whole lot of confusing presently. Everybody is looking for safe haven. Market has lost over 2percent this morning. Everybody is worried over what the future holds. The possibility of recouping the loss is very remote. Though I believe there is still hope for us here in Nigeria,” said a dealing member on the Nigerian Stock Exchange (NSE).
Brent crude, the international oil benchmark, rebounded 5 per cent to $36 a barrel on Tuesday, while the US marker West Texas Intermediate rose to $33. In Monday’s rout, oil plunged by a quarter in its sharpest one-day drop since the 1991 Gulf war.
As the oil price panic seemingly fades, bargain hunters on Custom Street, Lagos Nigeria remained risk averse as they failed to consider taking advantage of stocks new low.
As at 10:45am Nigerian time, stock have lost about N330billion. The value of listed stocks stood at N13.092trilion from an open level of N13.428trillion. Tier one bank stocks are still leading the offer basket as investors take low risk positions. GTBank (-9.93%), Zenith (-9.69%), UBA (-9.60%), FBNH (-9.28%).
As at 10:45am Nigerian time, stock have lost about N330billion. The value of listed stocks stood at N13.092trilion from an open level of N13.428trillion. Tier one bank stocks are still leading the offer basket as investors take low risk positions. GTBank (-9.93%), Zenith (-9.69%), UBA (-9.60%), FBNH (-9.28%).
This poor performance comes amid impressive dividend yields that attract investors ahead of their qualification and closure dates.
FDC research analyst, Temitope Olugbile said on Tuesday that the oil market remains tricky. “Though we have seen slight recovery but the price war remains. For now, oil market remains very uncertain and we watch and see what happens in the near future”, she said. The future price of oil according to her remains around $40 per barrel.
Stock markets in Europe opened slightly higher following Monday’s plunge, when shares saw the biggest falls since the 2008 financial crisis. London’s FTSE 100 share index opened up 1percent after having sunk 7.7percent in the previous session. They raised bet as their policymakers continue to think of new measures to soften the economic blow from the global coronavirus outbreak.
The Nigerian equities market on Monday recorded its largest dip in a single session this year, as the All Share Index (ASI) tumbled by 2.40percent at the close of the first trading session of the week.
The weakness witnessed across the domestic and indeed all major global equities markets was underpinned by investors reaction to Saudi Arabia and Russia failure to agree on how to respond to plunging crude oil demand on the back of the Covid-19 outbreak.
FBN Quest analysts expect the stock market to witness this same sentiment in today’s session.
The weakness witnessed across the domestic and indeed all major global equities markets was underpinned by investors reaction to Saudi Arabia and Russia failure to agree on how to respond to plunging crude oil demand on the back of the Covid-19 outbreak.
FBN Quest analysts expect the stock market to witness this same sentiment in today’s session.
